Manufacturing grows 3.9% in June, offsetting sharp declines in mining and electricity sectors; key sectors like metals and petroleum products show robust performance.
NEW DELHI (Economy India): India’s industrial economy showed modest momentum in June 2025, as the Index of Industrial Production (IIP) recorded a 1.5% year-on-year growth, driven primarily by strong manufacturing activity. The data, released by the Ministry of Statistics and Programme Implementation on July 28, reflects a mixed performance across core sectors.
This growth compares favorably to the 1.2% expansion recorded in May 2025, marking a marginal improvement in industrial activity despite weaknesses in the mining and electricity segments.
Sectoral Performance: Manufacturing Outshines Mining and Power
- Manufacturing: Grew by 3.9%, becoming the primary driver of June’s industrial growth.
- Mining: Contracted by (-8.7%), indicating sluggish activity in raw material extraction.
- Electricity: Declined by (-2.6%), pointing to weak power generation during the month.
The overall IIP stood at 153.3 in June 2025, up from 151.0 in June 2024.
Top Performing Industry Groups (NIC 2-digit level)
Out of 23 industry groups, 15 recorded positive growth. Leading contributors included:
- Manufacture of Basic Metals – Growth: 9.6%
- Key drivers: MS slabs, light steel HR coils, steel pipes and tubes.
- Manufacture of Coke & Refined Petroleum Products – Growth: 4.2%
- Key drivers: Diesel, naphtha, petrol/motor spirit.
- Manufacture of Fabricated Metal Products (Excluding Machinery & Equipment) – Growth: 15.2%
- Key drivers: Steel frameworks for towers, forged blanks, stainless steel utensils.
Use-Based Classification: Infrastructure Goods Lead
The IIP growth under use-based categories in June 2025 showed varied trends:
| Category | Index | Growth Rate (YoY) |
|---|---|---|
| Primary Goods | 151.3 | -3.0% |
| Capital Goods | 115.2 | +3.5% |
| Intermediate Goods | 167.9 | +5.5% |
| Infrastructure/Construction Goods | 198.3 | +7.2% |
| Consumer Durables | 130.8 | +2.9% |
| Consumer Non-Durables | 144.6 | -0.4% |
Top Contributors to overall IIP growth in use-based classification:
- Infrastructure/Construction Goods
- Intermediate Goods
- Consumer Durables
Revisions & Methodology Updates
- May 2025 IIP was revised from 1.2% to final estimate after incorporating updated data.
- The quick estimates for June are based on 89.2% weighted response rate, while May’s final numbers had 93.6% coverage.
- As per the revised release calendar, IIP data is now published on the 28th of every month (or the next working day if it’s a holiday).
Analysis: Uneven Recovery, But Manufacturing Resilience Encouraging
Economists noted that the headline 1.5% growth, though modest, reflects resilience in India’s industrial core, especially manufacturing, amid weak global demand and monsoon disruptions.
“The robust performance in metals and refinery products suggests demand-side recovery in infrastructure and transport sectors,” said Dr. A. Verma, an industrial economist.
However, the steep 8.7% contraction in mining raises concerns over raw material supply and future input costs for core industries.
Eyes on July and Monsoon Trends
The next IIP data for July 2025 will be released on August 28, and analysts will be closely watching monsoon impact on mining and electricity, along with festive season production trends in consumer goods.
(Economy India)
