India’s IIP Slows To 2.7% In April; Manufacturing Sector Growth Remains Firm

The index of industrial production (IIP) increased by 2.7% in April 2025, driven by the expansion of the manufacturing and electricity generation sectors in India. While there was positive growth in the manufacturing and electricity sectors, there was a significant contraction in the mining sector in April, according to the data released by the Ministry of Statistics and Programme Implementation.

IIP in April 2025 was slightly lower than 3.9% registered in March 2025. However, it was significantly down from 5.2% registered in April 2024.

India's IIP growth rate slowed down to 2.7% in April from 3% reported in March 2025. There was a significant contraction in the growth of the electricity and mining sectors in April compared to March. According to Press Information Bureau (PIB) data, the electricity sector grew at a rate of 6.3% in March, which declined to 1.1% in April. Similarly, the mining sector growth rate stood at 0.4% in March, and it further declined to 0.2% in April.

Manufacturing sector growth increased marginally from 3% in March to 3.4% in April, as per PIB data.

Manufacturing Sector Growth in April

The manufacturing sector emerged as the only sector out of the three that witnessed a higher growth rate. Within the sector, 16 out of 23 industry groups experienced positive growth over the same period as the previous year. This data indicates a sustained improvement in industrial productivity, showcasing the resilience and potential for growth in various sectors of the economy.

Production of basic metals, motor vehicles, trailers, and semi-trailers supported the growth of the manufacturing sector in April. The manufacture of basic metals saw a notable increase of 4.9%, driven by the production of steel pipes and tubes, MS blooms, billets, ingots, and pencil ingots, as well as flat products of alloy steel.

Growth Rate of Primary, Capital and Intermediate Goods in April

The growth of primary goods stood at 151.6, whereas the growth of capital goods stood at 114.3 and the growth of intermediate goods stood at 164.2 in April 2025. Additionally, the growth of infrastructure/construction goods at 191.6, consumer durables at 127.2, and consumer non-durables at 148.4.

The growth rates compared to April 2024 showed declines in primary goods by 0.4% and consumer non-durables by 1.7%, whereas capital goods soared by 20.3%, highlighting the significant capital investment and expansion activities in the industrial sector.

Consumer durables witnessed a sharp rebound in April to 1.7% after declining by 2.1% in March and by falling 2.4% in April 2024.

What is IIP Data?

The Index of Industrial Production (IIP) data is a reflection of the growth of India's industrial production in key segments like manufacturing, mining and energy. IIP data tracks and indicates thechange in volume of production in Indian industries. IIP data is released every month by Ministry of Statistics and Programme Implementation (MoSPI).
As per the IIP data, the whole economy has been divided into three segments, ie manufacturing, mining and energy. Manufacturing has the highest weightage in IIP data, ie of 77.6%, mining comes in second spot with a weightage of 14.4%, whereas electricity comes in third spot with a weightage of 8%.