India’s industrial output grows 3% in March, FY 2024-25 growth at 4%, lowest in four years

India’s industrial output grew by 3 per cent in March 2025, a slight enchancment from 2.7 per cent in February however down from 5.5 per cent in March 2024. This slowdown was primarily resulting from weaker performances in the manufacturing, mining, and energy sectors.The authorities additionally revised February’s growth estimate to 2.7 per cent, down from an preliminary 2.9 per cent.
For fiscal 12 months 2024-25, the Index of Industrial Production (IIP) expanded by 4 per cent, the lowest growth price in four years, considerably decrease than 5.9 per cent in 2023-24 and 11.4 per cent in 2021-22. The earlier low was -8.4 per cent in 2020-21.
The National Statistics Office (NSO) information confirmed a slowdown throughout key sectors. Manufacturing grew by 3 per cent in March 2025, down from 5.9 per cent a 12 months earlier. Mining output elevated by solely 0.4 per cent, a pointy decline from 1.3 per cent in March 2024. Power era growth additionally eased, from 8.6 per cent to six.3 per cent.
Aditi Nayar, Chief Economist at Icra, famous that whereas there was slight enchancment in electrical energy and manufacturing growth, these positive aspects have been offset by the slowdown in mining. She stated, “In sequential terms, the improvement in YoY (year-on-year) growth of electricity and mild uptick in that of manufacturing was offset to a large extent by the dip in the growth of mining”.
“Looking ahead, while there is some evidence and commentary around frontloading in exports to the US, we need to see whether this is driven by redirection away from other geographies or a bump up in output in the ongoing month,” she added.
Additionally, the use-based classification information confirmed combined outcomes. The capital items sector noticed growth decelerating to 2.4 per cent from 7 per cent in the earlier 12 months. Consumer durables (white items) grew 6.6 per cent, slower than the 9.5 per cent growth in March 2024, whereas client non-durables contracted by 4.7 per cent, reversing the 5.2 per cent growth a 12 months earlier.
The infrastructure and development items section reported an 8.8 per cent growth, barely up from 7.4 per cent in March 2024. Primary items noticed a modest enhance of three.1 per cent, in comparison with 3 per cent final 12 months. The intermediate items sector expanded by 2.3 per cent, down from 6.1 per cent in the earlier 12 months.
In a notable change, the NSO has moved up the discharge date of the IIP information to the twenty eighth of every month, decreasing the lag to four weeks from the earlier six-week interval, when information was launched on the twelfth.