During April 2025, the industrial production growth in India slowed down significantly as indicated by the Index of Industrial Production (IIP). The IIP index increased only 2.7% YoY, while the same was 5.2% a year back in April 2024. Even if you compare the industrial growth in India in March 2025, the index grew 3.9%, and this indicates that India witnessed a sluggish core sector production during April. So, why this slowdown? Let’s understand by digging deep into the core sectors’ growth. 

Core Sector Growth 

To understand India’s industrial production growth, let’s understand how the core sectors performed. India’s manufacturing sector in April grew 3.4%, which is an improvement over March’s 3% growth. However, the electricity generation, which is another pillar of IIP, took a major blow as the rise in production dropped to 1.1% from March’s 6.3% growth. For the mining sector also, the growth slowed down massively from 0.4% in March to 0.2% in April. 

Other Sectors Growth 

While the core sectors’ industrial production slowed down except manufacturing, the use-based sectors such as capital goods witnessed a major surge of around 20.3% YoY from 3.1% growth registered in April 2024. Even though it has grown multifold QoQ from March 2025’s 2.4% rise. 

The intermediate goods production rose 4.1% while that of infrastructure goods rose by 4%, considered as healthy growth. A slight decrease has been witnessed in consumer durables output, that is, from 6.6% growth in March 2025, it has come down to 6.4% rise in April 2025. However, compared to April 2024, consumer durables output growth of 9.8%, the growth has significantly tanked. 

On the other hand, the consumer non-durables saw a turnaround, as in April the production grew by 1.7% compared to a fall in production by 2.1% in March, and in April 2024 it fell by 2.4%. 

The primary goods production growth also succumbed by 0.4% against the 3.1% rise in March 2025 and a whopping 7% growth registered in April 2024. 

Wrapping up  

While the overall industrial production has increased, driven by a capital goods output surge and manufacturing sector and consumer non-durables output, the growth has been sluggish compared to the corresponding month last year and even compared to March. 

Source: CNBC TV18

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