India’s industrial activity slowed to an eight-month low of 2.7 per cent in April 2025, due to a weaker performance in mining, electricity, infrastructure and construction goods.

IIP growth rate was 3.9 per cent in March 2025 and 5.19 per cent in April 2024.

Manufacturing output grew 3.4 per cent in April, compared with 4.2 per cent a year earlier. Mining contracted by 0.2 per cent against 6.8 per cent growth a year earlier, and power output rose just 1 per cent, lower than the 10.2 per cent growth a year ago.

Electricity demand will remain soft in May as well due to cooler weather from the early onset of monsoons.

Capital goods saw strong growth at 20.3 per cent, up from 2.8 per cent. Consumer durables rose 6.4 per cent, while consumer non-durables declined by 1.7 per cent.

Infrastructure/construction goods grew 4 per cent, down from 8.5 per cent. Primary goods output contracted by 0.4 per cent compared with 7 per cent growth last year. Intermediate goods expanded by 4.1 per cent, slightly up from 3.8 per cent the previous year.

“India’s industrial activity weakened in April amid angst over US tariffs,” said Dharmakirti Joshi, chief economist, Crisil, adding this remains a downside risk to the industrial outlook.

“As of now, the pause on US reciprocal tariff hike provides temporary relief, but the 10 per cent universal tariff hike by the US remains in force since April,” Joshi said.