What Factors Contributed to India's 1.2% Industrial Growth in May?
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Synopsis
India's industrial production saw a growth of 1.2% in May, driven by a strong manufacturing sector despite setbacks in mining and power. This report explores the sectors contributing to this growth and the implications for the economy. Dive in for an insightful analysis of the current industrial landscape!
Key Takeaways
- India's industrial production increased by 1.2% in May.
- The manufacturing sector grew by 2.6%.
- Mining sector output slightly declined by -0.1%.
- The power sector contracted by -5.8%.
- Capital goods production surged by 14.6%.
- Infrastructure sector growth was at 6.3%.
New Delhi, June 30 (NationPress) India's industrial production, measured by the Index of Industrial Production (IIP), achieved a growth rate of 1.2 percent in May this year, as reported by the Ministry of Statistics on Monday.
The statistics revealed that the manufacturing sector, which is crucial for providing quality employment opportunities for the nation’s recent graduates, experienced a notable 2.6 percent increase in May compared to the same month in the previous year.
On the downside, the mining sector recorded a slight decline of (-0.1 percent) during the month, while the power sector faced a substantial contraction of (-5.8 percent) in electricity generation. These downturns in both the mining and power sectors adversely affected the overall industrial growth figures.
Within the manufacturing domain, 13 out of 23 industry groups experienced positive growth in May 2025 compared to the same month in the prior year. The leading contributors to this growth include: “Manufacture of basic metals” (6.4 percent), “Manufacture of machinery and equipment” (11.8 percent), and “Manufacture of other non-metallic mineral products” (6.9 percent).
In the “Manufacture of basic metals” sector, significant contributions to growth were noted in the item groups such as “MS blooms/billets/ingots/pencil ingots”, “MS slabs”, and “Flat products of Alloy Steel”.
In the “Manufacture of machinery and equipment” category, the item groups “Separators including decanter centrifuge”, “Pumps of all types”, and “Stationary and internal combustion piston engines not for motor vehicles” saw significant growth.
For the “Manufacture of other non-metallic mineral products”, the item groups cement and glassware reported substantial growth.
According to the figures based on use classification, the production of capital goods, which includes machinery utilized in factories, surged by an impressive 14.6 percent in May. This segment is indicative of genuine investment occurring in the economy, which has a ripple effect on job and income creation moving forward.
The infrastructure sector recorded a growth rate of 6.3 percent driven by significant government projects in highways, railways, and ports.
Point of View
It is essential to acknowledge that while the 1.2% growth in India's industrial production is promising, the declines in the mining and power sectors highlight areas that require immediate attention. Balancing growth with sustainable practices is crucial for long-term stability.
NationPress
30/06/2025
Frequently Asked Questions
What was the growth percentage of India's industrial production in May?
India's industrial production recorded a growth of 1.2% in May.
Which sector showed the highest growth in May?
The manufacturing sector showed the highest growth of 2.6% in May.
What was the impact of the mining sector on industrial growth?
The mining sector experienced a marginal decline of -0.1%, which negatively affected overall industrial growth.
How did the power sector perform in May?
The power sector faced a significant contraction of -5.8% in electricity generation.
What are the key contributors to the manufacturing growth?
The main contributors were the manufacture of basic metals, machinery and equipment, and other non-metallic mineral products.
