Industrial production growth slows to 10-month low of 1.5% in June

India’s industrial production growth slowed to a ten-month low of 1.5% in June 2025, dragged down by a sharp contraction in mining and electricity output due to the early onset of monsoon and heavy rainfall, data released by the National Statistical Office (NSO) on Monday showed.

Industrial output, as measured by the Index of Industrial Production (IIP), had risen by 4.9% in June 2024. The latest print is the slowest since August 2024, when IIP growth had flattened to near-zero.

Mining activity shrank by 8.7% in June, a sharp reversal from the 10.3% expansion seen in the same month last year. Electricity generation too declined by 2.6%, compared with an 8.6% rise a year ago.


Manufacturing, which forms the bulk of the IIP, offered some support as it recorded a modest rise of 3.9% in June 2025, slightly higher than the 3.5% growth seen in June 2024.

The NSO also revised upwards the growth rate for May 2025 to 1.9%, up from the earlier estimate of 1.2%.

For the first quarter of FY26 (April-June), industrial production grew by 2%, less than half the 5.4% growth recorded during the same period last year.