India’s Industrial Growth Slows to 1.2% in May 2025 — Capital Goods Show Promise

Smestreet02 Jul, 2025News

India’s industrial output slowed to just 1.2% in May 2025, its weakest expansion in nine months, according to MoSPI. Key contributors to the decline include weak manufacturing growth, contraction in mining, and a sharp drop in electricity output—largely due to early monsoon impact. However, bright spots emerged in capital goods (+14.1%), infrastructure, and intermediate goods. For India’s MSMEs, this is both a warning and an opportunity. Sectors tied to capital goods and construction may benefit, while those in consumer products face headwinds. Read the full breakdown and expert insights on SMEstreet.