New Delhi: India’s industrial production rose 4% in August 2025, driven largely by a strong performance in the mining sector, according to government data released on Monday.
The Index of Industrial Production (IIP) for July was revised upward to 4.3% from the earlier estimate of 3.5%. In contrast, the IIP had recorded flat growth in August 2024.
“With mining sector growth at 6%, the All-India IIP recorded a 4% year-on-year rise in August 2025,” the National Statistics Office (NSO) said. Notably, mining output had contracted 4.3% in August 2024.
The manufacturing sector, which contributes over three-fourths of the index, expanded 3.8% in August 2025, up from 1.2% a year earlier. Within manufacturing, the production of basic metals and motor vehicles, trailers, and semi-trailers showed robust growth of 12.2% and 9.8%, respectively.
Electricity generation also improved, rising 4.1% in August 2025, compared with a 3.7% decline in the same month last year.
During April–August 2025, IIP growth slowed to 2.8%, down from 4.3% in the year-ago period.
Aditi Nayar, Chief Economist at Icra, noted that despite a low base, industrial growth eased to 4% in August 2025 from the revised 4.3% in July. “The slowdown was entirely driven by manufacturing, which slipped to 3.8% from 6% in July,” she said. On the other hand, mining output rebounded after four months, and electricity generation reached a five-month high.
Looking ahead, Nayar added, “GST rationalisation is expected to boost consumption during the festive season, likely supporting manufacturing growth in September–October 2025 once older inventories are cleared.”
Use-based classification data showed that capital goods production rose 4.4% in August 2025, compared with flat growth a year ago. Consumer durables growth slowed to 3.5% from 5.4%, while consumer non-durables output contracted 6.3%, deepening from a 4.4% decline in August 2024.
Infrastructure and construction saw a notable improvement, growing 10.6% in August 2025, up from 2.7% a year ago. The production of primary goods rose 5.2%, reversing a 2.6% contraction in August 2024, while intermediate goods expanded 5%, up from 3.1% in the same month last year.
