India's industrial production growth slowed to a nine-month low of 1.2 per cent in May 2025 due to poor performance of manufacturing, mining and power sectors caused by the early onset of monsoon, according to official data released on Monday.

The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 6.3 per cent in May 2024.

The National Statistics Office also revised downward the industrial production growth for April to 2.6 per cent from the earlier estimate of 2.7 per cent released last month.

The previous low was observed in August 2024 when IIP remained unchanged.

The NSO data showed that the manufacturing sector's output growth decelerated to 2.6 per cent in May 2025 from 5.1 per cent in the year-ago month.
Mining production contracted by 0.1 per cent against a growth of 6.6 per cent a year ago. Power production declined by 5.8 per cent in May 2025 against 13.7 per cent growth in the year-ago period.

During the April-May period of FY26, industrial production grew by 1.8 per cent compared to 5.7 per cent a year ago.

Aditi Nayar Chief Economist, Head - Research & Outreach, ICRA said, "The early onset of the monsoon doused activity in mining and the demand for electricity, with both these sub-sectors of the IIP reporting a contraction in May 2025, amidst an anaemic growth of manufacturing.

Moreover, the underlying trends were uneven, with three of the use-based categories displaying a contraction, amidst a continued high 14.1 per cent expansion in capital goods, boosted by a low base, Nayar said.