Quote on IIP data for by Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
Below the Quote on IIP data for by Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
“The simultaneous slowdown in India’s core sector output to a modest 0.5% and the moderation in IIP growth to 2.7% in April 2025 reflect signs of demand-side fatigue and base-effect distortions in the industrial economy. While capital goods output surged by 20.3%, signaling investment resilience, the sustained weakness in consumer non-durables (-1.7%) points to muted rural demand and subdued consumption of essentials. Primary goods, which had shown steady growth in previous months, recorded a contraction of 0.4%, warranting close monitoring. The contraction in refinery and fertilizer production, along with soft mining output, underscores the impact of external trade frictions and supply-side bottlenecks. Going forward, policymakers must balance targeted fiscal support, particularly for rural infrastructure and MSMEs, with calibrated monetary easing to revive demand without stoking inflation. A timely and nuanced policy response will be critical to sustaining industrial momentum in a globally volatile environment.”
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