Mumbai, April 14, 2025 – India’s industrial production showed signs of improvement in late FY24, with IIP growth hitting 5.2% in November. This recovery was supported by gains in manufacturing, mining, and electricity sectors. However, Bank of Baroda projects a slowdown in FY25, estimating growth to ease to 6.2% from 9.5% in FY24 due to a high base and expected weakness in early manufacturing activity.
The bank remains cautiously optimistic about a recovery in the second half of FY25, citing improved GST collections, steady PMIs, and increased capital expenditure. It also expects the upcoming Union Budget to include supportive measures to boost manufacturing and investment.
