India's Industrial Deceleration: A Nine-Month Low in Production Growth

India's industrial production growth has hit a nine-month low, increasing by only 1.2 percent in May 2025, according to newly released official data. This slowdown is primarily due to weak performances in the manufacturing, mining, and power sectors.

The Index of Industrial Production (IIP) measured a considerable drop from last year's 6.3 percent growth seen in May 2024. The National Statistics Office (NSO) also recalibrated April's industrial production growth upwards to 2.6 percent from an earlier prediction of 2.7 percent.

Manufacturing sector growth decreased sharply to 2.6 percent compared to 5.1 percent last year, while mining production fell by 0.1 percent against last year's growth of 6.6 percent. Power production saw a steep decline, dropping by 5.8 percent in May 2025 compared to 13.7 percent growth in the prior year. Overall, industrial production for April-May of FY26 grew by just 1.8 percent compared to 5.7 percent last year.

(With inputs from agencies.)