Mining, manufacturing and electricity sectors for April were (-)0.2 per cent, 3.4 per cent and 1.1 per cent, respectively.
| Photo Credit:
AMIT DAVE
With poor performance of mining and electricity, growth of the factory output — based on Index of Industrial Production (IIP) — came down to 2.7 per cent in April as against 3 per cent in March, the government reported on Wednesday. Experts believe the decline in the growth rate is expected to continue.
According to a government statement, the growth rates of mining, manufacturing and electricity sectors for April were (-)0.2 per cent, 3.4 per cent and 1.1 per cent, respectively. Within the manufacturing sector, 16 out of 23 industry groups recorded a positive growth in April 2025 over April 2024.
According to Rajni Sinha, Chief Economist with CareEdge, among other components of IIP, a critical aspect to monitor is the performance in capex-related indicators. Capital goods output rose 20.3 per cent aided by a supportive base while infrastructure/construction output showed some moderation compared to the earlier months. “The Centre’s capex contracted by 4 per cent during January-February FY25 following a pick-up in Q3. Given this weak momentum, the pace of capex revival remains a critical watch out going ahead,” she said.
Paras Jasrai, Senior Analyst with India Ratings & Research, said another way of looking at whether the industrial growth is at the 2-digit level. The number of sectors having positive growth in April touched a three-month high of 16 (January 2025: 19). However, the combined weight of these 16 sectors in manufacturing is 49.7 per cent (weight of manufacturing sector in IIP is 77.6 per cent). “Only 11 sub-sectors out of a total 23, had a higher y-o-y growth than the overall output growth in April, illustrating the skewness in the industrial growth,” he said.
Experts said that global uncertainty and movement of the monsoon will shape the growth path in coming months.
Sinha said that though the US has put the reciprocal tariffs on a 90-day hold, global economic uncertainty is expected to persist, going forward. This is likely to weigh on both private investment and consumption impulses. “Expectations of a further rate cut by the RBI amid easing price pressures are expected to offer some support,” she said.
According to Jasrai, the daily power generation fell 4.1 per cent y-o-y as of May 27, due to lower-than-normal temperatures resulting in a plausible contraction in electricity output in May, the highest since August 2024. Unseasonal rains could also impact the construction goods output. “This along with an unfavourable base effect (May 2024: 6.3 per cent y-o-y) would keep the factory output growth under 2 per cent y-o-y in May, in Ind-Ra’s view,” he said.
Published on May 28, 2025
Mining, manufacturing and electricity sectors for April were (-)0.2 per cent, 3.4 per cent and 1.1 per cent, respectively.
| Photo Credit:
AMIT DAVE
With poor performance of mining and electricity, growth of the factory output — based on Index of Industrial Production (IIP) — came down to 2.7 per cent in April as against 3 per cent in March, the government reported on Wednesday. Experts believe the decline in the growth rate is expected to continue.
According to a government statement, the growth rates of mining, manufacturing and electricity sectors for April were (-)0.2 per cent, 3.4 per cent and 1.1 per cent, respectively. Within the manufacturing sector, 16 out of 23 industry groups recorded a positive growth in April 2025 over April 2024.
According to Rajni Sinha, Chief Economist with CareEdge, among other components of IIP, a critical aspect to monitor is the performance in capex-related indicators. Capital goods output rose 20.3 per cent aided by a supportive base while infrastructure/construction output showed some moderation compared to the earlier months. “The Centre’s capex contracted by 4 per cent during January-February FY25 following a pick-up in Q3. Given this weak momentum, the pace of capex revival remains a critical watch out going ahead,” she said.
Paras Jasrai, Senior Analyst with India Ratings & Research, said another way of looking at whether the industrial growth is at the 2-digit level. The number of sectors having positive growth in April touched a three-month high of 16 (January 2025: 19). However, the combined weight of these 16 sectors in manufacturing is 49.7 per cent (weight of manufacturing sector in IIP is 77.6 per cent). “Only 11 sub-sectors out of a total 23, had a higher y-o-y growth than the overall output growth in April, illustrating the skewness in the industrial growth,” he said.
Experts said that global uncertainty and movement of the monsoon will shape the growth path in coming months.
Sinha said that though the US has put the reciprocal tariffs on a 90-day hold, global economic uncertainty is expected to persist, going forward. This is likely to weigh on both private investment and consumption impulses. “Expectations of a further rate cut by the RBI amid easing price pressures are expected to offer some support,” she said.
According to Jasrai, the daily power generation fell 4.1 per cent y-o-y as of May 27, due to lower-than-normal temperatures resulting in a plausible contraction in electricity output in May, the highest since August 2024. Unseasonal rains could also impact the construction goods output. “This along with an unfavourable base effect (May 2024: 6.3 per cent y-o-y) would keep the factory output growth under 2 per cent y-o-y in May, in Ind-Ra’s view,” he said.
Published on May 28, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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