IIP Grows 1.5% In June 2025 As Manufacturing Gains Offset Mining Slump

New Delhi, Jul 29 (KNN) India's industrial sector demonstrated modest expansion in June 2025, with the Index of Industrial Production (IIP) recording a 1.5 percent year-on-year increase, according to official data released by the Ministry of Statistics and Programme Implementation on Monday. 

This growth represents an improvement from the 1.2 percent increase registered in the previous month.

The manufacturing sector emerged as the primary driver of industrial growth, posting a robust 3.9 percent increase during the period. 

However, this positive momentum was partially offset by significant contractions in other key sectors, with mining activities declining by 8.7 percent and electricity generation falling by 2.6 percent compared to the same period last year.

The overall IIP reached 153.3 in June 2025, marking an increase from the 151.0 recorded in June 2024. Within the manufacturing segment, 15 out of 23 industry groups reported positive growth, indicating broad-based sectoral improvement despite some areas of weakness.

Several manufacturing subsectors contributed significantly to the overall growth trajectory. The production of basic metals registered the strongest performance with a 9.6 percent increase, while coke and refined petroleum products rose by 4.2 percent. 

Fabricated metal products, excluding machinery and equipment, recorded particularly strong growth of 15.2 percent. Key products driving these gains included mild steel slabs, diesel, and stainless steel utensils.

The mining sector faced considerable challenges during the reporting period, with its index declining to 123.2 in June 2025 from 134.9 recorded in the corresponding month of the previous year. 

This substantial decrease highlighted ongoing difficulties in the extractive industries sector.

Analysis by use-based classification revealed mixed performance across different categories of goods. Infrastructure and construction goods demonstrated strong momentum with a 7.2 percent increase, while intermediate goods grew by 5.5 percent and capital goods expanded by 3.5 percent. 

Consumer durables showed modest growth of 2.9 percent, though consumer non-durables contracted slightly by 0.4 percent. Primary goods recorded a more pronounced decline of 3.0 percent during the same comparative period.

In a related development, the Ministry revised the May 2025 IIP figures upward, adjusting the index to 157.6 from the previously reported 154.7. 

This revision resulted in an improved final growth rate of 1.9 percent for May, higher than the initially estimated 1.2 percent increase.

(KNN Bureau)