India’s industrial output growth fell to a nine-month low of 1.2% in May 2025, dragged down by weak performance in the manufacturing, mining, and electricity sectors, data released by the National Statistical Office (NSO) on Monday showed.The factory output, measured by the Index of Industrial Production (IIP), had grown 6.3% in May 2024, while the April 2025 estimate has been revised to 2.6%, slightly down from the earlier 2.7%.According to the data, manufacturing – which forms over three-fourths of the IIP – grew 2.6% in May, down from 5.1% a year ago. Mining output shrank 0.1%, reversing a 6.6% expansion in May last year. Electricity generation saw a sharp contraction of 5.8% compared to a robust 13.7% growth a year ago.During April-May FY26, industrial output grew 1.8%, much slower than the 5.7% growth recorded during the same period last year.The overall IIP index for May 2025 stood at 156.6, up from 154.7 in May 2024. Sectoral indices came in at 136.3 for mining, 154.3 for manufacturing, and 216.0 for electricity.As per the use-based classification, infrastructure and capital goods were the primary drivers of growth. The use-based indices were:
- Primary goods: 157.9 (down 1.9%)
- Capital goods: 120.1 (up 14.1%)
- Intermediate goods: 168.1 (up 3.5%)
- Infrastructure/construction goods: 198.1 (up 6.3%)
- Consumer durables: 129.3 (down 0.7%)
- Consumer non-durables: 150.3 (down 2.4%)
Among the 23 industry groups in manufacturing, 13 recorded positive growth in May. The top performing sectors included:
- Basic metals (up 6.4%) driven by items like MS billets, slabs, and alloy steel products.
- Machinery and equipment n.e.c. (up 11.8%) with strong output of separators, pumps, and stationary engines.
- Non-metallic mineral products (up 6.9%) led by increased production of all types of cement, clinkers, and glassware.
