Even though India is getting success on the Direct Tax Revenue and GST Revenue front, the country has received a big setback on the industrial front. The types of figures that have come out by the government regarding industrial production are quite surprising and disturbing. According to government data, the country’s industrial production has reached the 9 -month lower level in the month of May. The special thing is that this decline is being seen every month. Let us also tell you what kind of figures have been released by the government regarding IIPs.
IIP at 9 months lower level
The increase in industrial production of the country has been at 1.2 percent of the 9 -month low in May. Industrial production has been affected by the weak performance of manufacturing, mining and power sectors. The growth rate of industrial production measured through the Industrial Production Index (IIP) was 6.3 percent in May of the last year. The National Statistics Office (NSO) also revised the industrial production growth for April to 2.6 percent, while it was estimated to be 2.7 percent last month.
Which sectors saw weakness
According to NSO data, production growth in the manufacturing sector declined to 2.6 percent in May this year, which was 5.1 percent in the same month a year ago. At the same time, mining production declined by 0.1 percent, while a year ago it saw a growth of 6.6 percent. Power generation declined by 5.8 percent, while it increased by 13.7 percent in the same period a year ago. During the April-May period of FY 2025-26, industrial production has increased by 1.8 percent on an annual basis. ICra Chief Economist Aditi Nair said that early monsoon has affected the activities of the mining sector and there has been a decrease in demand for electricity. Due to this, both these sub-sectors of IIP have declined in May, while the increase in manufacturing has been slow. He said that slow growth in industrial production in the first two months of the June quarter is not a good indication for the growth of industrial gross value (GVA) in the first quarter of FY 2025-26.
Growth to be seen in them
Depending on the use-based classification, the increase in capital goods segment was 14.1 percent in May, 2025, which was 2.6 percent in the same month a year ago. The production of consumer durables declined by 0.7 percent in the month under review, while in May 2024 it increased by 12.6 percent. The production of consumer non-tricky items decreased by 2.4 percent in May, 2025, while it increased by 2.8 percent a year ago. The infrastructure/construction items recorded an increase of 6.3 percent in May this year, while it increased by 7.6 percent in the same month a year ago. According to the data, the production of primary items declined by 1.9 percent in May, 2025, compared to 7.3 percent in the same period a year ago. The growth rate in the case of intermediate goods was 3.5 percent in the month, while it increased by 3.5 percent in the same month.
stock market crash
By the way, there was a big decline in the stock market on Monday. The Bombay Stock Exchange’s leading index Sensex fell 452.44 points to close at 83,606.46 points. However, during the business session, the Sensex saw a decline of 576.77 points and the index reached the lower level of the day with 83,482.13 points. On the other hand, the major index of the National Stock Exchange took place at 25,517.05 points with a fall of 50 120.75 points. Whereas during the business session, the Nifty fell by 164.5 points to a lower level of the day at 25,473.30 points. According to experts, the stock market may see a decline in the coming days.