India’s April Manufacturing Output Rises 3.4%, Industrial Growth at 2.7%

Image Source: Business Today

India's manufacturing sector posted a 3.4% year-on-year growth in April 2025, up from 3% in March, based on data provided by the Ministry of Statistics and Programme Implementation (MoSPI). Industrial production also increased 2.7% year-on-year, outpacing the 1% growth projection from a Reuters poll.

1. Manufacturing Sector Drives Growth

The April Index of Industrial Production (IIP) was 152.0, higher than 148.0 in April 2024.
16 of the 23 industry groups showed growth, with manufacturing of machinery and equipment increasing by 17%.
Motor vehicle production accelerated 15.4% due to strong off-take of automobile components and commercial vehicles.

2. Industrial Output Surprises on the Upside

Industrial production growth moderated to 2.7%, down from 3.9% in March, but still higher than the 1% estimate.
Electricity generation increased 1.1%, much less than the 6.3% rise in March.
Mining industry output fell 0.2%, reversing a 0.4% gain in the last month.

3. Diversified Consumer Consumption Trends

Consumer durables, such as cars and electronics, expanded 6.4%, evidencing robust discretionary consumption.
Consumer non-durables, such as packaged food and household goods, fell 1.7%, showing softer day-to-day consumption.

4. Economic Prospects and Implications

The manufacturing sector's resilience is likely to power India's economic recovery.
Experts foresee sustained volatility, with inflation and global trade patterns dictating growth in the future.

The government will seek to unveil policy initiatives to drive industrial momentum.

Sources: Business Today, Financial Express, MSN