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IIP growth decelerates in Apr’25

Mainly affected by poor growth in mining and electricity sectors

* Industrial output growth decelerated to 2.7% YoY in Apr’25 vs. an upwardly revised growth of 3.9% in Mar’25 and 5.2% in Apr’24. The deceleration in industrial output was mainly led by a contraction in mining (-0.2% in Apr’25 vs. 1.2%/6.8% in Mar’25/Apr’24) and a moderation in electricity output (1.1% in Apr’25 vs. 7.5%/10.2% in Mar’25/Apr’24, lowest growth in seven months). (Exhibits 1 and 2)

* On the other hand, manufacturing sector growth remained steady at 3.4% in Apr’25 (vs. 4.0%/4.2% in Mar’25/Apr’24). The details of the manufacturing sector suggest that 54.9% of the sub-sectors grew at a slower rate compared to Apr’24 (vs. 36.1% in Mar’25), 66.9% of the items grew less than 5% (vs. 53.1% in Mar’25), and 36% of the items posted a contraction (vs. 53.1% in Mar’25). (Exhibit 3)

* Notably, basic metals (the largest component with 12.8% weight) saw output growth of 4.9% in Apr’25 (vs. 8.7% in Mar’25). Among the export-oriented segments, wearing apparel saw 10.8% growth in Apr’25 (vs. 1.3% in Mar’25). However, moderation was seen in the growth of textile output, and leather and related products remained in the contractionary zone during the month.

* According to the use-based classification, the output of infrastructure and construction goods witnessed moderation in growth compared to the previous month (4.0% in Apr’25 vs. 9.9% in Mar’25). Moreover, capital goods output jumped 20.3% in Apr’25 on the back of a supportive base. On the consumption side, the output of consumer durable goods increased by 6.4% in Apr’25 (vs. 6.9% in Mar’25), while output of consumer non-durables remained in the contractionary zone for the third consecutive month. (Exhibit 4)

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