India's Industrial Output Sees Steady Growth Despite Sectoral Hurdles

In a reflection of India's economic resilience, the country's Index of Industrial Production (IIP) saw a year-on-year increase of 1.5% in June 2025, as unveiled by the Ministry of Statistics and Programme Implementation (MoSPI). This growth follows a 1.2% rise recorded in May, indicating a consistent upward trajectory in industrial activities.

While the manufacturing sector emerged as a vital growth engine with a 3.9% rise, setbacks were observed in other areas. The mining sector witnessed an 8.7% decline, and electricity generation fell by 2.6%. Despite these challenges, the IIP index for June 2025 improved to 153.3 from 151.0 in June 2024.

The positive momentum in manufacturing was driven by gains in industries like fabricated metal products and basic metals. Capital, intermediate, and infrastructure goods also posted notable growth. Meanwhile, industries like consumer non-durables experienced slight contractions. MoSPI anticipates future revisions of these initial figures, aligning with IIP's systematic update policy.

(With inputs from agencies.)