IIP Growth Hits a Brake: Slowest in 10 Months at 1.5%

India’s industrial output grew by 1.5% year-on-year in June 2025, marking the slowest pace in 10 months, mainly due to a sharp decline in mining and electricity generation. In contrast, the growth was 4.9% in June 2024. According to the Ministry of Statistics and Programme Implementation (MoSPI), the manufacturing sector, which holds around 78% weight in the IIP, rose by 3.9%, an improvement over May’s 3.2%. However, mining output contracted sharply by 8.7%, and electricity generation declined by 2.6%, both affected by excessive rainfall in late June. In use-based classification, intermediate goods saw a healthy growth of 5.5%, and infrastructure/construction goods rose by 7.2%. On the other hand, capital goods output fell 3.5%, while primary goods declined 3%. Among consumer categories, durables rebounded with 2.9% growth, but non-durables contracted by 0.4%. Overall, the numbers reflect a fragile and uneven industrial recovery, with soft domestic demand, global uncertainties, and weather-related disruptions weighing on performance. The actual growth of 1.5% also came below ICRA’s estimate of 2%, signaling persistent weakness in core sectors. (Negative) Mining (-ve) Electricity(-ve)

Capital Goods (-ve) Primary Goods / Metals (-ve) (Positive ) Infra / Construction L&T, PNC Infratech Intermediate Goods SRF, Deepak Nitrite Consumer Durables Voltas, Dixon Tech