India's Industrial Growth Inches Up by 1.2% In May, Signals Steady Economic Progress: Ministry of Statistics

New Delhi: India's industrial growth, based on the Index of Industrial Production (IIP), recorded a 1.2 per cent growth in May this year, according to data released by the Ministry of Statistics on Monday.

The data showed that the manufacturing sector, which provides quality jobs for the country’s young graduates passing out of the country’s universities and engineering institutes, registered a 2.6 per cent growth in May over the same month of the previous year.

However, the mining sector output fell marginally by (-) 0.1 per cent during the month, and the power sector proved to be a laggard with a contraction of (-) 5.8 per cent in electricity generation. This negative growth in the mining and power sectors pulled down the overall figure for industrial growth during the month.Within the manufacturing sector, 13 out of 23 industry groups recorded a positive growth in May 2025 over the same month of the previous year.

The top three positive contributors are – "Manufacture of basic metals" (6.4 per cent), "Manufacture of machinery and equipment" (11.8 per cent), and "Manufacture of other non-metallic mineral products" (6.9 per cent).In the industry group, "Manufacture of basic metals", item groups "MS blooms/ billets/ ingots/ pencil ingots", "MS slabs" and "Flat products of Alloy Steel" have shown significant contribution to growth.

In the industry group "Manufacture of machinery and equipment", item groups "Separators including decanter centrifuge", "Pumps of all types", and "Stationary and internal combustion piston engines not for motor vehicles" have recorded a significant growth.In the industry group "Manufacture of other non-metallic mineral products", item groups cement and glassware have shown strong growth.The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by a robust 14.6 per cent in May.

This segment reflects the real investment taking place in the economy, which has a multiplier effect on the creation of jobs and incomes going ahead.

The infrastructure sector clocked a growth of 6.3 per cent on the back of big-ticket government projects being implemented in the highways, railways and ports sectors.

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