The growth of factories in India slows to 2.7 % in April; Mining slippage, consumer demands are mixed

Industry production growth in India fell to 2.7 % on an annual basis in April, a decrease from 3.9 % in March, according to the data issued by the Ministry of Statistics and Program Implementation (MOSPI) on Wednesday. However, the number was higher than the 1 % growth expectations by economists in a Reuters poll.

The manufacturing sector, which constitutes the largest part of the industrial production index (IIP), has increased by 3.4 % in production in April, and improved 3 % growth in the previous month.

However, the energy sector showed signs of slowdown. Electricity generation increased by only 1.1 %, sharply lower than 6.3 % in March. Meanwhile, the mining sector recorded a scroll of 0.2 %, which reflects 0.4 % growth in the previous month.

Manufacturing manufacturing led to an increase of 3.4 %, while the generation of electricity witnessed a modest increase of 1.1 %. However, the mining sector slipped into negative lands, with a contract of 0.2 %.

The IIP total for the month of April 2025 was 152.0, a height of 148.0 in April 2024, indicating an annual expansion of industrial activity.

Smoothing sectoral indicators:

Mining: 130.6

Manufacturing: 149.5

Electricity: 214.4

Within the manufacturing sector, 16 out of 23 industrial groups (according to the NIC category consisting of two numbers) recorded a positive growth in April 2025 compared to the same month last year.

The first three shareholders in this growth were:

NEC machinery and equipment manufacturing: an increase of 17.0 %

Car manufacturing, trailers and semi -compositions: an increase of 15.4 %

Basic mineral manufacturing: an increase of 4.9 %

In the basic mineral category, the main growth drivers included pipes and steel tubes, MS Blooms/Billets/Scitiests, and flat -bars flat products.

“IIP for 2025 represents a somewhat positive start for the fiscal year, exceeding expectations, with total growth at 2.7 % on an annual basis. This was despite the disappointing basic sector of hopes that represent more than 40 % of the index. Manufacturing was the main engine, expanding it by 3.4 %, led by strong growth in machinery and equipment (17.0 %). Sancar said. Chuite Trans Seing CEO, improving momentum in investment -related sectors related to transportation, hinting to a revival in private Capex.

Likewise, the growth in the auto sector was supported by an increase in the production of car components, axes and commercial vehicles, reflecting the strong demand in the auto sector in India.

On the side of consumption, the performance was mixed. The judicial materials for consumers, which include goods such as cars and electronics, increased by 6.4 %, reflecting the health demand in estimated spending. On the other hand, non -consumers, which include basic commodities such as packed foods and household items, decreased by 1.7 %, indicating a slowdown in daily consumption.