India’s Industrial Growth Edges Up to 3% in March, But Annual Momentum Slows

India’s industrial production growth improved to 3% in March, compared to 2.7% in February, according to data released by the National Statistics Office on Monday. Despite the monthly uptick, the performance was weaker than the 5.5% growth recorded in the corresponding month a year ago.

The Index of Industrial Production—the key measure of factory output—rose to 164.8 in March 2025 from 160.0 a year ago. However, the government revised February’s growth downward to 2.7%, from the provisional 2.9%.

Manufacturing, which accounts for nearly 78% of the IIP, grew just 3% in March, markedly lower than the 5.9% expansion a year ago. Mining activity nearly stalled, at 0.4% growth compared to 1.3% last year. The electricity sector offered some support with a 6.3% rise, but that was also softer from last year’s 8.6%.

On a use-based classification, Infrastructure/Construction goods emerged as the strongest driver, growing by 8.8% year-on-year. Consumer durables posted a healthy 6.6% rise, while primary goods grew by 3.1%. However, consumer non-durables witnessed a sharp 4.7% contraction, reflecting subdued demand conditions.

At an industry group level, manufacture of electrical equipment led the charts with a strong 15.7% rise, followed by motor vehicles, trailers and semi-trailers at 10.3%, and basic metals at 6.9%.

For the full fiscal year 2024–25, India’s industrial output grew by 4%, down from 5.9% recorded in the previous year. This moderation signals the lingering effects of global uncertainties and domestic supply-side challenges on India’s manufacturing and mining activities.

The IIP data for April 2025 is scheduled to be released on May 28, 2025.