Archive · 30 Jun 2025
India's Industrial Output Slows; Petroleum Exports Rebound in May
In May 2025, India's industrial production grew slowly, at only 1.2%, the lowest in nine months.
This was partly due to less activity in areas like factories, mining, and power plants.
However, some sectors, such as those making capital goods and infrastructure, did well.
Also, India exported more refined petroleum products in May, rebounding from a decline in April.
This situation reflects mixed trends across different parts of the economy.
India's industrial production growth slowed to a nine-month low of 1.2% in May 2025.
Manufacturing output growth decelerated to 2.6% in May 2025.
Mining production contracted by 0.1% and power production declined 5.8% in May 2025.
Capital goods and infrastructure sectors showed growth.
Refined petroleum product exports rebounded in May 2025, increasing by over 39% month-on-month.
- Who
- Index of Industrial Production (IIP) and Statistics Ministry
- What
- India's industrial production growth slowed to 1.2% in May 2025.
- When
- May 2025
- Where
- India
- Why
- Due to weak performance in manufacturing, mining, and power sectors, possibly due to the early onset of monsoon.
Economic Slowdown Concerns
Economic Optimism
Overall Economic Outlook
Economic Slowdown Concerns
The slowdown in manufacturing growth, coupled with contractions in mining and electricity sectors, indicates broader economic challenges.
Economic Optimism
Capital and infrastructure sectors continue to show strong growth, and the rebound in petroleum exports provides some positive offset to the slowdown.
Consumer Demand Trends
Economic Slowdown Concerns
Weakness in consumer non-durable goods and decline in consumer durables output indicate struggles in consumer demand.
Economic Optimism
Easing food inflation, potential policy rate cuts, and favorable monsoon prospects may boost consumption in the near term.
- IIP May 2025 Growth
- 1.2%
- Manufacturing Growth (May 2025)
- 2.6%
- Mining Production (May 2025)
- -0.1%
- Power Production Decline (May 2025)
- 5.8%
- Capital Goods Growth (May 2025)
- 14.1%
- Petroleum Exports (May 2025, M-o-M)
- 39%+
- Diesel Exports (May 2025, Y-o-Y)
- 14%
Sources
India’s factory output falls to 3-month low of 1.2% in May 2025; capital goods lead growth
Industrial Output Growth Slows To 9-Month Low Of 1.2% In May
India's Industrial Production Growth Falls To 9-Month Low Of 1.2% In May 2025
Industrial growth slows to 1.2% in May; capital and infrastructure goods lead expansion
India’s industrial output growth slows to 1.2 percent in May, a 9-month low - Telegraph India
Industrial output growth slows to 9-month low of 1.2% in May
Industrial growth falls to 9-month low
India’s refined petroleum product exports rebound in May
