IIP growth slows to an 8-month low of 2.7% in April

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Growth in industrial activity in the country slowed to an eight-month low of 2.7% in April 2025, dragged down by lower activity in several sectors, including mining and quarrying, electricity, primary goods, infrastructure and construction, and consumer non-durables.

According to the Index of Industrial Production (IIP) for April 2025 released by the Ministry of Statistics and Programme Implementation, growth in industrial activity was last slower in August 2024, when it had contracted 0.1%.

Also read | Industrial production slows, IIP at 6-month low of 2.9% in February 2025

In April this year, the mining and quarrying sector shrank 0.2%, its worst performance since August 2024. The manufacturing sector, however, saw a growth of 3.4%, a three-month high.

The electricity sector saw growth slowing to 1.1% in April, also the slowest since August 2024. Similarly, the primary goods category contracted by 0.4% in April, an eight-month low.

Capital goods growth

Notably, the capital goods sector saw very strong growth of 20.3% in April 2025, albeit on a low base of 2.81% in April last year.

Also read | IIP grows 3% as electricity, manufacturing output surge

“On the forefront was a smart increase in capital goods supported by both electrical and non-electrical machinery,” Madan Sabnavis, chief economist at the Bank of Baroda said. “While there was a favourable base effect, growth of 20.3% is impressive. It needs to be seen if this is maintained in the coming months as one is looking at investment to pick up.”

The consumer durables segment saw growth quickening to 6.4%, a three-month high.

“The successful rabi crop as well as the upcoming marriage season has helped to prop up production,” Mr. Sabnavis added. “The auto sector was also a driver of production with growth of 15.4%.”

The consumer non-durables sector, however, shrank 1.7% in April 2025, the third consecutive quarter of contractions. In fact, the sector has contracted in four out of the last five months.