IIP Data June 2025: Industrial Output Growth Slows To 1.5%, Lowest In Ten Months

India's industrial production index (IIP) increased by 1.5% in June 2025, compared to the same month last year. This slight rise follows a 1.2% growth in May, as reported by the Ministry of Statistics and Programme Implementation. However, this figure fell short of the 2.2% growth predicted by economists surveyed by Bloomberg.

The manufacturing sector showed a notable increase of 3.9%, while mining and electricity sectors saw declines of 8.7% and 2.6%, respectively. Within manufacturing, basic metals rose by 9.6%, coke and refined petroleum products increased by 4.2%, and fabricated metal products excluding machinery surged by 15.2%. These sectors significantly contributed to the overall industrial output.

Sectoral Performance

Basic metals' strong performance was driven by higher production of MS slabs, HR coils and sheets, as well as steel pipes and tubes. Additionally, petroleum products such as diesel, naphtha, and petrol played a crucial role in boosting factory output during this period.

From a use-based classification perspective, infrastructure and construction goods led with a robust growth of 7.2%. Intermediate goods followed with a rise of 5.5%, while capital goods experienced an increase of 3.5%. Consumer durables also saw an uptick of 2.9%.

Consumer Goods Analysis

Despite some positive trends, primary goods contracted by 3%, and consumer non-durables decreased slightly by 0.4%. The data for June was compiled with an impressive weighted response rate of 89.2%. Meanwhile, May's data was finalised with a higher response rate of 93.6%.

The IIP index reached a level of 153.3 in June, up from last year's figure of 151.0 for the same month. The next set of IIP data for July is scheduled for release on August 28.

This recent data highlights the mixed performance across various sectors within India's industrial landscape, reflecting both growth opportunities and challenges that lie ahead.