India’s industrial output saw a slight uptick in March 2025, with growth reaching 3%, a modest increase from 2.7% in February. However, when compared to the same month last year, this figure represents a decline from 5.5%, primarily attributed to underperformance in key sectors such as manufacturing, mining, and power generation.
Overview of Industrial Production Trends
The latest figures from the National Statistics Office (NSO) reveal that the Index of Industrial Production (IIP) serves as a crucial indicator of factory output in India. Notably, the previous month’s growth rate for February was revised downward to 2.7%, a reduction from the earlier estimate of 2.9%.
- March 2025 Growth: 3%
- February 2025 Revision: 2.7% (down from 2.9%)
- March 2024 Comparison: 5.5%
Sector-Specific Insights
Breaking down the sectors, the manufacturing segment saw a decline in growth, dropping to 3% in March 2025 from 5.9% the previous year. This slowdown has raised concerns about the sustainability of industrial growth in the current economic climate.
- Manufacturing Growth: 3% (down from 5.9%)
- Mining Production: 0.4% (down from 1.3%)
- Power Output Growth: 6.3% (down from 8.6%)
Annual Performance Review
For the fiscal year 2024-25, the overall IIP growth was reported at 4%, a notable decrease from 5.9% recorded in the prior fiscal year. This trend suggests a need for strategic interventions to bolster industrial performance across these critical sectors.
In summary, while the slight increase in March’s industrial production may appear positive, the year-over-year decline highlights ongoing challenges that require attention. Stakeholders in the industrial sector will need to assess the factors contributing to this slowdown to formulate effective recovery strategies.
