India's Industrial Output Slumps Amid Early Monsoon Impact

India's industrial production growth fell to a nine-month low of 1.2% in May 2025, hindered by manufacturing, mining, and power sectors affected by early monsoons. National Statistics Office data showed significant contractions in these areas, impacting overall economic growth forecasts for the quarter.

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.