India's industrial output growth was at a ten-month low in June, led by a steep decline in mining, though manufacturing saw an uptick.
IIP grew by 1.5% in June, as against the revised growth of 1.9% in the preceding month of May, according to the data released by the Ministry of Statistics and Programme Implementation on Monday.
The IIP growth in June has missed the estimate of 2.2% shared by analysts tracked by Bloomberg.
Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also led to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month, said Aditi Nayar, chief economist at ICRA.
In quarterly terms too, the IIP growth eased to an 11-quarter low of 2% in Q1 FY26 from 4% in Q4 FY25, with excess rains in parts of the quarter dampening electricity generation and mining output, Nayar said.
Manufacturing activity, grew by 3.9% on an annual basis, compared to 3.5% in the same month last year.
Mining output fell 8.7%, versus a rise of 10.3% in the corresponding period of the previous year.
Electricity production fell 2.6%, as against a rise of 8.6% in the year-ago period.
IIP Internals (Use-Based)
Primary goods fell 3% year-on-year in June versus fall of 1.4% in the preceding month.
Capital goods grew by 3.5% versus 13.3% in May.
Intermediate goods grew 5.5% versus 4.7% in the preceding month.
Infrastructure goods grew 7.2% versus 6.7% last month.
Consumer durables grew 2.9% versus fall of 0.9% in the previous month.
Consumer non-durables output fell 0.4% versus a fall of 1% in the previous month.
Given this, and the slower, albeit healthy, growth in construction-related volume indicators such as cement output and finished steel consumption, ICRA expects the industrial GVA growth to decelerate in Q1 FY26 from 6.5% uptick seen in Q4 FY25.
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