📘 India’s IIP April 2025 Report: Capital Goods Lead 20% Growth | Sectors & Stocks to Watch

📘 India’s IIP April 2025 Report: Capital Goods Lead 20% Growth | Sectors & Stocks to Watch

Published on: May 28, 2025
By: Piyush Patel | Investment Mentor @ Profit From IT

📌 Key Insights from April 2025 IIP Data

• Overall IIP Growth: 2.7% YoY (vs 3.0% in March 2025) Muted Growth.
  
  

• Manufacturing Sector: Grew by 3.4% – key contributor to overall growth
  
  

• Electricity Sector: Up 1.1% | Mining: Contracted by -0.2%
  
  

• IIP Index Value: 152.0 in April 2025 (vs 148.0 in April 2024)
  
  

📊 Use-Based Sectoral Growth

🏭 Industry Highlights – Top & Bottom Performers

Top 5 Gainers (YoY):

• 🏗 Machinery & Equipment: +17.0%
  
  

• 🚗 Motor Vehicles: +15.4%
  
  

• ⚡ Electrical Equipment: +15.2%
  
  

• 🔩 Fabricated Metals: +12.7%
  
  

• 👕 Wearing Apparel: +10.8%
  
  

Bottom 3 Decliners:

• ⚠️ Other Manufacturing: -20.3%
  
  

• 💊 Pharmaceuticals: -3.9%
  
  

• 🧪 Chemicals: -3.6%
  
  

🔍 Sectors to Watch – Based on April Trends

1. Capital Goods: 🚀 Massive 20.3% growth – driven by machinery, tools, engines
   
   

2. Auto & Components: 📈 Revival continues in commercial vehicles & components
   
   

3. Infrastructure & Cement: 🧱 Supported by government capex and construction demand
   
   

4. Electricals: 🔌 Power equipment and appliances gaining momentum
   
   

📌 Company Watchlist (Sector-Linked Stocks)

🧠 Analyst’s Interpretation

• Industrial output shows mild but broad-based growth.
  
  

• Capital goods surge points to an investment-led recovery.
  
  

• Caution in consumer non-durables and mining reflects demand uncertainty.
  
  

• Manufacturing remains India’s economic backbone.
  
  

📅 What to Track Next

• May IIP Data (Releases June 30)
  
  

• Union Budget FY26 – Watch infra spending, PLI schemes
  
  

• Rural demand trends – FMCG & textile sector impact
  
  

🧾 Investor Takeaways

✅ Focus on capital goods and infra-linked sectors
✅ Track auto and electrical space for further gains
✅ Stay cautious on non-durables and commodity-linked sectors

⚠️ Disclaimer

This blog is for educational purposes only and is not a recommendation to buy or sell any securities. Investors must conduct their own research before making any investment decisions.