Quote on IIP Data by Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
Below the Quote on IIP Data by Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
“The May 2025 IIP growth of 1.2%, down from 2.7% in April and below market expectations, underscores the uneven nature of India’s industrial recovery. While capital goods and infrastructure segments continue to show encouraging investment-led momentum, persistent contraction in electricity output, consumer non-durables, and select manufacturing segments highlights that domestic demand remains fragile. Although the RBI’s 100 bps rate cut since February appears to be gaining traction in capacity-building sectors, broader transmission, especially to consumption-driven industries, is still evolving. For credit markets, this warrants close monitoring of sectors with prolonged demand-side drag or margin pressures. With the 90-day U.S. tariff reprieve nearing its end and given the geopolitical tensions in the Middle East, industrial sentiment remains vulnerable, calling for calibrated policy support and sharper credit risk differentiation across sectors.”
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