India's Industrial Output Slumps Amid Early Monsoon Impact

India's industrial production recorded a nine-month low in growth, plummeting to 1.2% in May 2025, as manufacturing, mining, and power sectors faltered under the influence of an early monsoon, official data revealed on Monday.

The Index of Industrial Production (IIP) had previously displayed a robust 6.3% growth in May 2024, indicating a stark contrast to the current economic climate. The National Statistics Office (NSO) also revised downward the growth figures for April, adjusting them to 2.6% from an earlier estimate of 2.7%.

Aditi Nayar of ICRA highlighted that the monsoon curtailed mining and electricity demands, with uneven trends across categories. While capital goods surged by 14.1%, aided by a low base effect, consumer durables and primary goods faced declines, posing challenges for future industrial growth.