India’s Industrial Output Slumps To 10-Month Low Of 1.5 Per Cent In June As Rains Hit Mining, Power

The National Statistics Office (NSO) also revised upwards the pace of industrial production growth for May to 1.9 per cent from the earlier estimate of 1.2 per cent released last month.

The previous low pace of growth was recorded in August 2024 when the output growth stayed flat.

Source : Freepik

India's industrial production growth slowed to a 10-month low of 1.5 per cent in June 2025 due to poor performance of mining and power sectors, which were impacted by excess rains especially in second half of the month, according to official data released on Monday.

The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 4.9 per cent in June 2024.

The National Statistics Office (NSO) also revised upwards the pace of industrial production growth for May to 1.9 per cent from the earlier estimate of 1.2 per cent released last month.

The previous low pace of growth was recorded in August 2024 when the output growth stayed flat.

"Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month," said Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA, in a statement.

The NSO data showed that the manufacturing sector's output growth rose marginally to 3.9 per cent in June 2025 from 3.5 per cent in the year-ago month.

Mining production contracted by 8.7 per cent against a growth of 10.3 per cent recorded a year ago.

Power production declined by 2.6 per cent in June 2025 against 8.6 per cent growth in the year-ago period.

During the April-June quarter of FY26, industrial production growth slowed from 5.4 per cent a year ago to 2 per cent, the lowest in past 11 quarters.

Nayar stated, "In quarterly terms, the IIP growth eased to an 11-quarter low of 2.0% in Q1 FY2026 from 4.0% in Q4 FY2025, with excess rains in parts of the quarter dampening electricity generation and mining output." Within the manufacturing sector, 15 out of 23 industry groups have recorded a positive year-on-year growth in June 2025.

As per use-based classification, the capital goods segment growth decelerated to 3.5 per cent in June 2025 from 3.6 per cent in the year-ago period.

Consumer durables (or white goods production) growth slowed to 2.9 per cent during the reporting month against a growth of 8.8 per cent in June 2024.

In June 2025, consumer non-durables output contracted 0.4 per cent compared to a contraction of one per cent a year ago.

Infrastructure/construction reported a growth of 7.2 per cent in June 2025, down from a 8.2 per cent expansion in the year-ago period.

The data also showed that the output of primary goods contracted by 3 per cent in June 2025 against 6.3 per cent growth a year earlier.

The expansion in the intermediate goods segment was 5.5 per cent in the month under review against 3.2 per cent a year ago.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)