India’s industrial production growth marginally accelerated to 3% in March from 2.7% in February, data released by the Ministry of Statistics & Programme Implementation (MoSPI) said on Monday.
On an annual basis, the growth in March was down from 5.5% in the corresponding month of the previous fiscal, mainly due to poor performance of manufacturing, mining and power sectors.
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The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of March 2025 are 0.4%, 3% and 6.3% respectively.
Mining production growth dipped to 0.4% from 1.3% growth a year ago, and power output also slowed to 6.3% in March against 8.6% in the year-ago period.
Notably, in the fiscal 2024-25, the IIP grew 4%, down from 5.9% recorded a year ago.
Recently, a report by the Union Bank of India has said that on account of a spike in global macroeconomic uncertainty, the IIP growth is expected to come under pressure going ahead.
April witnessed a spike in global trade uncertainty on reciprocal tariff hikes by the United States, the report added.
“We estimate that at least 30 to 35 per cent of the weight in IIP is attributed to exports, which is likely to come under pressure till some trade clarity is achieved. Our analysis shows that due to the negative hit on sentiment, investment decisions are likely to be deferred and consumption (especially for discretionary goods) may be weighed down by global macro uncertainty,” the report explained.
