Industrial growth slows to 1.2% in May; capital and infrastructure goods lead expansion

India’s industrial growth, measured by the Index of Industrial Production (IIP), eased to 1.2% in May 2025, down from 2.7% recorded in April 2025, according to the Quick Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI).

The IIP for May 2025 stood at 156.6, compared to 154.7 in the same month last year. Sector-wise performance showed a mixed trend, with manufacturing growing by 2.6%, while mining contracted marginally by 0.1% and electricity generation saw a sharp decline of 5.8%.

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As per the MoSPI data, the indices for the month were Mining at 136.3, Manufacturing at 154.3, and Electricity at 216.0.

Of the 23 industry groups under manufacturing, 13 posted positive growth in May 2025. Leading the pack were Manufacture of Basic Metals (6.4%) which was driven by items such as MS blooms, MS slabs, and alloy steel products.

Manufacture of Machinery and Equipment also showed growth with strong output in separators, pumps, and non-vehicle internal combustion engines.

Manufacture of Other Non-metallic Mineral Products were boosted by production of cement (all types), cement clinkers, and glassware.

Further, in terms of use-based classification, the Capital Goods segment registered a robust growth of 14.1%, while Infrastructure/Construction Goods rose by 6.3% and Intermediate Goods by 3.5%. However, Primary Goods declined by 1.9%, Consumer Durables dipped by 0.7%, and Consumer Non-durables shrank by 2.4%.

The indices by category were Primary Goods: 157.9, Capital Goods: 120.1, Intermediate Goods: 168.1, Infrastructure/Construction Goods: 198.1, Consumer Durables: 129.3, and Consumer Non-durables: 150.3.

The key contributors to May’s IIP growth, based on use-based classification, were Capital Goods, Infrastructure/Construction Goods, and Intermediate Goods, reflecting ongoing momentum in investment and construction-related activity.