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Key Points

India's industrial output rose 1.2% in May, driven by a 2.6% expansion in manufacturing. However, mining and power sectors dragged down overall growth with negative performances. Key contributors included basic metals and machinery production, which saw strong gains. The capital goods segment surged 14.1%, indicating robust investment activity in the economy.

Key Points: India's Industrial Production Grows 1.2% in May Amid Sector Variations

  • Manufacturing sector leads with 2.6% growth in May
  • Mining output dips slightly by 0.1%
  • Power generation contracts sharply by 5.8%
  • Capital goods production surges 14.1% signaling investment boost
2 min read

India's industrial production registers 1.2 per cent growth in May

India's IIP shows 1.2% growth in May with manufacturing up 2.6%, while mining and power sectors drag overall performance.

"The production of capital goods surged by 14.1%, reflecting strong investment momentum in the economy. – Ministry of Statistics"

New Delhi, June 30

India's industrial growth, based on the Index of Industrial Production (IIP), recorded a 1.2 per cent growth in May this year, according to data released by the Ministry of Statistics on Monday.

The data showed that the manufacturing sector, which provides quality jobs for the country’s young graduates passing out of the country’s universities and engineering institutes, registered a 2.6 per cent growth in May over the same month of the previous year.

However, the mining sector output fell marginally by (-) 0.1 per cent during the month, and the power sector proved to be a laggard with a contraction of (-) 5.8 per cent in electricity generation. This negative growth in the mining and power sectors pulled down the overall figure for industrial growth during the month.

Within the manufacturing sector, 13 out of 23 industry groups recorded a positive growth in May 2025 over the same month of the previous year. The top three positive contributors are – "Manufacture of basic metals" (6.4 per cent), "Manufacture of machinery and equipment" (11.8 per cent), and "Manufacture of other non-metallic mineral products" (6.9 per cent).

In the industry group, "Manufacture of basic metals", item groups "MS blooms/ billets/ ingots/ pencil ingots", "MS slabs" and "Flat products of Alloy Steel" have shown significant contribution to growth.

In the industry group "Manufacture of machinery and equipment", item groups "Separators including decanter centrifuge", "Pumps of all types", and "Stationary and internal combustion piston engines not for motor vehicles" have recorded a significant growth.

In the industry group "Manufacture of other non-metallic mineral products", item groups cement and glassware have shown strong growth.

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by a robust 14.1 per cent in May. This segment reflects the real investment taking place in the economy, which has a multiplier effect on the creation of jobs and incomes going ahead.

The infrastructure sector clocked a growth of 6.3 per cent on the back of big-ticket government projects being implemented in the highways, railways and ports sectors.

- IANS

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Reader Comments

P
Priya S
As an engineering graduate, I'm happy to see machinery manufacturing growing at 11.8%. More jobs for freshers! But government should focus on skilling programs too - many industries complain about unemployable graduates. Growth numbers alone won't solve unemployment.
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Rohit P
Infrastructure growth at 6.3% is the real story here! The new expressways and port projects are creating so many jobs in my hometown. Hope this continues - our construction workers finally getting regular wages after pandemic struggles.
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Sarah B
While the numbers look decent, I'm concerned about the regional disparities. Most growth seems concentrated in western/southern states. What about eastern India? We need balanced regional development for true economic progress.
K
Karthik V
The -5.8% in power sector is alarming! How will industries run without electricity? Government must fix coal supply issues and push renewable energy harder. Solar power potential is huge in India but implementation is slow. #GreenGrowthNeeded
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Nisha Z
Cement and steel growth shows real estate revival! My husband's construction material shop sales have improved 30% this quarter. Small businesses like ours benefit when big industries grow. Hope this trickles down to more MSMEs 🙏

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