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
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The April Index of Industrial Production (IIP) was 152.0, higher than 148.0 in April 2024.
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16 of the 23 industry groups showed growth, with manufacturing of machinery and equipment increasing by 17%.
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Motor vehicle production accelerated 15.4% due to strong off-take of automobile components and commercial vehicles.
2. Industrial Output Surprises on the Upside
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Industrial production growth moderated to 2.7%, down from 3.9% in March, but still higher than the 1% estimate.
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Electricity generation increased 1.1%, much less than the 6.3% rise in March.
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Mining industry output fell 0.2%, reversing a 0.4% gain in the last month.
3. Diversified Consumer Consumption Trends
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Consumer durables, such as cars and electronics, expanded 6.4%, evidencing robust discretionary consumption.
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Consumer non-durables, such as packaged food and household goods, fell 1.7%, showing softer day-to-day consumption.
4. Economic Prospects and Implications
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The manufacturing sector's resilience is likely to power India's economic recovery.
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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