India’s industrial production growth eased to 2.7% year-on-year in April, down from 3.9% in March, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday. The figure, however, came in higher than the 1% growth forecast by economists in a Reuters poll.
The manufacturing sector, which makes up the largest portion of the Index of Industrial Production (IIP), recorded a 3.4% rise in output in April, improving from 3% growth seen in the previous month.
However, the power sector showed signs of deceleration. Electricity generation rose by just 1.1%, sharply lower than the 6.3% increase in March. Meanwhile, the mining sector posted a contraction of 0.2%, reversing from 0.4% growth in the preceding month.
Sector-wise, manufacturing led the growth with a 3.4% rise, while electricity generation saw a modest increase of 1.1%. The mining sector, however, slipped into negative territory, contracting by 0.2%.
The overall IIP for April 2025 stood at 152.0, up from 148.0 in April 2024, indicating a year-on-year expansion in industrial activity.
Breaking down the sectoral indices:
Mining: 130.6
Manufacturing: 149.5
Electricity: 214.4
Within the manufacturing sector, 16 out of 23 industry groups (as per NIC 2-digit classification) recorded positive growth in April 2025 compared to the same month last year.
The top three contributors to this growth were:
Manufacture of machinery and equipment n.e.c.: up 17.0%
Manufacture of motor vehicles, trailers and semi-trailers: up 15.4%
Manufacture of basic metals: up 4.9%
In the basic metals category, key growth drivers included pipes and tubes of steel, MS blooms/billets/ingots, and flat products of alloy steel.
“The IIP for April 2025 marks a moderately positive start to the fiscal year, surpassing expectations, with overall growth at 2.7% YoY. This was despite a disappointing core sector performance that accounts for over 40% of the index. Manufacturing was the main driver, expanding by 3.4%, led by robust growth in machinery and equipment (17.0%), motor vehicles (15.4%), and basic metals (4.9%). These gains reflect improving momentum in investment-linked and transport-related sectors, hinting at a revival in private capex,” said Sankar Chakraborti, MD & CEO, Acuité Ratings & Research Limited.
Similarly, growth in the motor vehicles segment was powered by a surge in production of auto components, axles, and commercial vehicles, reflecting robust demand in India’s automotive sector.
On the consumption side, performance was mixed. Consumer durables, which include goods such as automobiles and electronics, rose 6.4%, reflecting healthy demand in discretionary spending. In contrast, consumer non-durables, comprising essential goods like packaged foods and household items, fell by 1.7%, suggesting a slowdown in everyday consumption.
