India’s Industrial Production Shows Modest Growth: April Up 2.6%, May Preliminarily Up 1.2%
Tokyo, Japan – July 18, 2025 – The Japan External Trade Organization (JETRO) has reported on the latest industrial production figures for India, indicating a period of steady but moderate expansion. According to JETRO’s announcement on July 18, 2025, India’s Index of Industrial Production (IIP) recorded a 2.6% year-on-year increase in April, with a preliminary 1.2% rise in May.
These figures offer a snapshot of the health of India’s manufacturing, mining, and electricity generation sectors. While the growth rates are not exceptionally high, they suggest that the Indian industrial landscape continues to move forward.
Understanding the Index of Industrial Production (IIP)
The IIP is a crucial economic indicator that measures the growth rate of industrial sectors over a specific period. It is compiled and published by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) in India. The IIP serves as a barometer for the performance of key industries and plays a vital role in economic forecasting and policy-making.
The IIP comprises three broad sectors:
- Manufacturing: This is the largest component of the IIP and represents the production of goods across a wide range of industries.
- Mining: This sector includes the extraction of minerals and other raw materials.
- Electricity: This sector covers the generation and distribution of electricity.
The IIP is often presented with a base year, meaning the current period’s production is compared against the production levels of that base year.
Insights from the Latest Data:
The reported 2.6% year-on-year increase in April suggests a solid performance, reflecting the ongoing economic activity within India’s industrial base. The subsequent preliminary figure of 1.2% for May, while lower, still indicates positive momentum. It’s important to note that May’s figure is preliminary, meaning it is subject to revision as more comprehensive data becomes available. Such revisions are common in economic reporting.
Potential Drivers and Factors to Consider:
Several factors could be contributing to this industrial growth:
- Domestic Demand: A growing population and an expanding middle class in India often translate to robust domestic demand for manufactured goods, automobiles, and consumer durables, all of which are key drivers of industrial production.
- Government Initiatives: The Indian government has been actively promoting manufacturing through various schemes like “Make in India” and Production Linked Incentive (PLI) schemes. These initiatives aim to boost domestic production and attract foreign investment, potentially contributing to the observed growth.
- Infrastructure Development: Investments in infrastructure projects, such as roads, railways, and power grids, can stimulate demand for industrial goods used in construction and related sectors.
- Global Economic Conditions: As an emerging economy, India’s industrial production can also be influenced by global economic trends, demand for its exports, and the availability of raw materials.
Looking Ahead:
While these figures provide a positive outlook, economists and analysts will be closely watching future IIP releases to assess the sustainability of this growth. Factors such as inflation, global supply chain stability, and the effectiveness of government policies will continue to shape India’s industrial trajectory.
The preliminary 1.2% growth in May, if it holds or is revised upwards, would suggest that the industrial sector is navigating a complex global economic environment effectively, maintaining a path of expansion. JETRO’s continued reporting on these vital economic indicators provides valuable insights for businesses looking to engage with the Indian market.
インドの鉱工業生産指数、4月は前年同月比2.6％上昇、5月は暫定1.2％上昇
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At 2025-07-18 00:00, ‘インドの鉱工業生産指数、4月は前年同月比2.6％上昇、5月は暫定1.2％上昇’ was published according to 日本貿易振興機構. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.