India's Industrial Output Growth Down to Nine-Month Low
The Wire Staff
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New Delhi: India’s industrial output growth has fallen to a nine-month low of 1.2% in May this year, following a contraction in mining and electricity sectors.
According to official data released on Monday (June 30), the output from mining and electricity contracted by 0.1% and 5.8%, respectively, reported Economic Times.
The industrial GVA growth too reduced to 6.1% in FY25 from 11.4% in FY24. Official figures for the June quarter will be released in August.
"The early onset of the monsoon doused activity in mining and the demand for electricity, amidst an anaemic growth of manufacturing," said Aditi Nayar, chief economist at ICRA.
Slow pickup in urban consumption along with early monsoon were cited as the reasons for the slowdown.
Nayar added that tepid industrial volume growth in April and May doesn't augur well for industrial gross value added (GVA) growth in the first quarter of FY26.
Earlier, the Index of Industrial Production data released by the National Statistical Office had revealed that India’s factory output had touched a three-month low of 5% in April.
The Index of Industrial Production or IIP growth rate for the month of April 2024 over the corresponding period of previous year was 5%. The IIP growth rate in April 2023 was 4.6%.
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