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Economic Review Projex Survey 99July 20254www.projectstoday.comIIPIndia%u2019s industrial output witnessed a nine-month low in May 2025, with the Index of Industrial Production (IIP) declining to 1.2 percent compared to the same month last year, according to data released by the Ministry of Statistics and Programme Implementation. This marks a deceleration from the 2.70 percent growth seen in May 2025 and remains lower than the levels recorded in May 2024.The Manufacturing sector was the only main sector, registering an increase of 2.6 percent. The overall IIP for May 2025 stood at 156.6, lower than 154.7 in May 2024. Among the major sectors, Manufacturing grew by 2.6 percent, Mining contracted by 0.1 percent, and Electricity output fell by 5.8 percent. The sectoral indices were recorded at 136.3 for Mining, 154.3 for Manufacturing, and 216.0 for Electricity.Within Manufacturing, 13 out of 23 industry groups at the two-digit NIC level recorded growth compared to the previous year. Leading the growth were Basic Metals (6.4 percent), Other Non-metallic mineral products (6.9 percent), and Machinery and Equipment not elsewhere classified (11.8 percent).Based on use-based classification, the indices for May 2025 stood at 157.9 for Primary goods, 120.1 for Capital goods, 168.1 for Intermediate goods, and 198.1 for Infrastructure and Construction goods. Consumer durables and consumer non-durables recorded indices of 129.3 and 150.3, respectively. Growth rates under this classification showed Capital goods leading with a strong 14.1 percent increase, followed by intermediate goods at 3.5 percent and Infrastructure/Construction goods at 6.3 percent. While, Consumer durables, Primary goods and Consumer non-durables declined by 0.7 percent, 1.9 percent and 2.4 percent, respectively.EIGHT INFRA INDUSTRIES The Index of Eight Core Industries (ICI) for May 2025 showed a modest increase of 0.7 percent compared to May 2024. This growth was primarily driven by positive production trends in Cement, Coal, Steel, and Refinery products.Sector-Wise PerformanceCoal production in May 2025 rose by 2.8 percent over the same month last year, contributing to a cumulative annual increase of 3.1 percent. Crude oil production, however, declined by 1.8 percent in May and saw a cumulative drop of 2.2 percent for the year. Natural gas declined by 3.6 percent in May, and its overall annual output also decreased by 2.3 percent.Petroleum refinery output increased by 1.1 percent in May but cumulative growth declined by 1.7 percent for the year. Fertiliser production also declined by 5.9 percent in May, and its annual growth too declined by 5.1 percent.Steel production increased by 6.7 percent in May, with a cumulative rise of 5.5 percent over the financial year. Cement posted the highest monthly growth at 9.2 percent, while its yearly output rose by 7.8 percent. Electricity generation declined by 5.8 percent in May and showing a cumulative decline of 2.2 percent over the year.The final growth rate for the index in April 2025 was recorded at 1.0 percent. For the full financial year from May 2024 to March 2025, the cumulative growth rate