IIP: Industrial production growth slumps from 5.9 percent to 4 percent in FY2025, government figures released

New Delhi| India’s industrial output growth rate increased marginally from 2.7 percent in February to three percent in March 2025. Official figures related to this were released. However, on an annual basis, the growth rate in March was less than 5.5 percent in the same month of the previous financial year. This was mainly due to the poor performance of the manufacturing, mining and power sectors.

The government also revised the industrial growth figure for February 2025 to 2.7 percent from a provisional estimate of 2.9 percent released earlier this month. Factory output, measured in terms of the Index of Industrial Production (IIP), was up 5.5 percent in March 2024, the data showed.

The production growth of the manufacturing sector declined marginally to 3 per cent in March 2025 from 5.9 per cent in the same month a year earlier, data released by the National Statistical Office (NSO) also showed.

The growth rate of mining production declined to 0.4 per cent from 1.3 per cent a year earlier. Electricity generation also declined to 6.3 percent in March 2025. In the same period a year ago, it was 8.6 per cent. IIP increased by 4 percent in FY 2024-25. This figure is lower than the 5.9 per cent recorded a year ago.