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Below the Quote on IIP data from Mr. 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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