India’s industrial production growth marginally dropped to 2.7 per cent in April from 3.0 per cent in the month of March 2025, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday.
The factory output, measured in terms of the Index of Industrial Production (IIP), rose by 5.2 per cent in April 2024, the data showed.
The National Statistics Office (NSO) also revised upwards industrial production growth for March to 3.9 per cent from the earlier estimate of 3 per cent released last month.
The manufacturing output, which carries the largest weight in the index, advanced to 3.4 per cent in April from 3 per cent in March. The mining output was at (-)0.2 per cent and electricity generation dropped to 1.1 per cent in April as against 6.3 per cent in March.
The Quick Estimates of IIP stood at 152.0 against 148.0 in April 2024. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of April 2025 came in at 130.6, 149.5 and 214.4 respectively.
As per the use base classification, the indices stood at 151.6 for Primary Goods, 114.3 for Capital Goods, 164.2 for Intermediate Goods and 191.6 for Infrastructure/ Construction Goods for the month of April 2025. Further, the indices for Consumer durables and Consumer non-durables stood at 127.2 and 148.4 respectively.
The corresponding growth rates of IIP as per Use-based classification in April 2025 over April 2024 are (-)0.4 per cent in Primary goods, 20.3 per cent in Capital goods, 4.1 per cent in Intermediate goods, 4.0 per cent in Infrastructure/ Construction Goods, 6.4 per cent in Consumer durables and (-)1.7 per cent in Consumer non-durables. “Based on use-based classification, the top three positive contributors to the growth of IIP for the month of April 2025 are Capital goods, Intermediate goods, Consumer durables,” the release maintained.
Reacting on this, Sankar Chakraborti, MD & CEO, Acuité Ratings & Research Limited, said, “The IIP for April 2025 marks a moderately positive start to the fiscal year, surpassing expectations, with overall growth at 2.7 per cent YoY. This was despite a disappointing core sector performance that accounts for over 40 per cent of the index. Manufacturing was the main driver, expanding by 3.4 per cent, led by robust growth in machinery and equipment (17.0 per cent), motor vehicles (15.4 per cent), and basic metals (4.9 per cent). These gains reflect improving momentum in investment-linked and transport-related sectors, hinting at a revival in private capex.”
Looking ahead, Acuité Ratings said, the trajectory of industrial growth in FY26 will depend on a normal monsoon, especially as excess rainfall in some regions raises near-term concerns.
