New Delhi: With the poor performance in mining and power sectors, India’s industrial output growth slowed to a 10-month low of 1.5 per cent in June 2025 due to early arrival of monsoon and rains. The previous low pace of growth in industrial production was recorded in August 2024 when the output growth stayed flat, according to official data released on Monday.As per the National Statistics Office (NSO) data, the factory output, measured in terms of the index of industrial production or IIP, had expanded by 4.9 per cent in June 2024. “The manufacturing sector’s output growth rose marginally to 3.9 per cent in June 2025 from 3.5 per cent in the year-ago month,” the NSO data showed. “Similarly, mining production contracted by 8.7 per cent against a growth of 10.3 per cent recorded a year ago, while power production declined by 2.6 per cent in June 2025 against 8.6 per cent growth in the year-ago period,” the data showed. Experts, however, said that early arrival of monsoon and rains have affected the key indicators like mining and power segments. “Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month,” said Aditi Nayar, chief economist, head-research & outreach of ICRA Ltd. During the April-June quarter of FY26, industrial production growth slowed from 5.4 per cent a year ago to 2 per cent, the lowest in the past 11 quarters. “In quarterly terms, the IIP growth eased to an 11-quarter low of 2.0 percent in Q1 FY2026 from 4.0 percent in Q4 FY2025, with excess rains in parts of the quarter dampening electricity generation and mining output,” Nayar said. Within the manufacturing sector, the data showed, 15 out of 23 industry groups have recorded a positive year-on-year growth in June 2025. “As per use-based classification, the capital goods segment growth decelerated to 3.5 per cent in June 2025 from 3.6 per cent in the year-ago period,” it showed.
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