India's Industrial Growth Slows Down

India's industrial output growth has reached a 10-month low of 1.5% in June 2025, according to the latest data from the National Statistical Office (NSO). This slowdown is primarily attributed to significant contractions in the mining and electricity sectors, exacerbated by the early onset of the monsoon season.

Sector-Wise Performance

The manufacturing sector showed a slight improvement, with output rising to 3.9% in June from 3.5% the previous year. However, mining output saw a drastic decline of 8.7%, a sharp contrast to the 10.3% growth recorded in June 2024. Similarly, electricity generation decreased by 2.6%, compared to an 8.6% increase in the same period last year.

Quarterly Overview

For the first quarter of FY26 (April–June), industrial output growth was modest at 2%, a significant drop from the 5.4% growth observed in the corresponding quarter of the previous year. The NSO has also revised May 2025's industrial growth estimate upward to 1.9% from the initial 1.2%.