India's Industrial Growth Dips: May IIP Records Sluggish Expansion

In May 2025, India's Index of Industrial Production (IIP) increased by a modest 1.2%, marking a slowdown from April's 2.7%. The mining and electricity sectors experienced contractions, while manufacturing showed marginal growth. Experts attribute the slump to early monsoons and emphasize potential impacts on future economic performance.

In a recent release, the Ministry of Statistics and Programme Implementation revealed that India's Index of Industrial Production (IIP) experienced a substantial slowdown in May 2025. The IIP rose by just 1.2%, compared to 2.7% growth in April, driven by contractions in key sectors such as mining and electricity.

Detailed statistics show that mining recorded a slight decline of 0.1%, while electricity fell sharply by 5.8%. Manufacturing, however, managed to maintain a positive trajectory with a 2.6% rise. The updated Quick Estimates of IIP are now available on the 28th of each month, capturing data from various production sources.

Economic experts like Aditi Nayar from ICRA Ltd and Paras Jasrai from India Ratings have attributed the decline to early monsoons affecting mining and electricity, alongside an uneven performance across manufacturing sub-sectors. The future growth outlook hinges on the anticipated India-US trade deal which could provide a boost to industrial activity.

(With inputs from agencies.)