New Delhi, September 29
India's industrial output, as measured by the Index of Industrial Production (IIP), rose to a seven-month high of four per cent in August 2025, driven largely by strong growth in the mining and electricity sectors, according to a press release by the PHD Chamber of Commerce and Industry (PHDCCI).
The mining sector registered a robust growth of 6 per cent in August, rebounding from a negative 7.2 per cent year-on-year growth in July 2025, while electricity generation climbed 4.1 per cent, up from 0.6 per cent in July, said Hemant Jain, President of PHDCCI.
"The manufacturing sector grew at 3.8 per cent, led by positive growth in 10 out of 23 industry groups at NIC 2-digit level, with double-digit growth in basic metals, electrical equipment, and other transport equipment," he added.
Within manufacturing, items such as mild steel slabs, hot-rolled coils, and steel pipes in the basic metals industry, diesel, petrol, and liquefied petroleum gas in petroleum products, and auto components and commercial vehicles in motor vehicles significantly contributed to the growth, the data showed.
Among use-based categories, consumer durables saw a strong recovery, rising 5.2 per cent in August from a negative growth in July, while infrastructure or capital goods recorded double-digit growth at 10.6 per cent, Jain noted.
"Use-based IIP trends show strong infrastructure and primary goods momentum but softer consumer demand. The recent GST 2.0 policy will balance investment with demand revival by catalysing consumption and broadening sustainable growth," said Ranjeet Mehta, Secretary General and CEO of PHDCCI.
The Ministry of Statistics and Programme Implementation released data on Monday, showing that the IIP Quick Estimates for August 2025 stood at 151.7, higher than the 145.8 recorded in the same month last year. Breaking it down, primary goods recorded an index of 148.9, capital goods 112.1, intermediate goods 170.4, and infrastructure or construction goods 200.8. Consumer durables and consumer non-durables stood at 134.4 and 132.8, respectively.
The ministry noted that top contributors to IIP growth were primary goods, infrastructure or construction goods, and intermediate goods.
The ministry also highlighted that the July 2025 indices were revised after receiving updated information from source agencies. The Quick Estimates for August 2025 and the final revision for July 2025 were compiled at weighted response rates of 90.96 per cent and 92.99 per cent, respectively. The next release of IIP data, for September 2025, is scheduled for October 28, 2025.
— ANI
Reader Comments
Good to see infrastructure and capital goods leading with 10.6% growth. This indicates long-term investment in our economy. The GST 2.0 policy should further boost this recovery. Jai Hind! 🇮🇳
While the numbers look good, I'm concerned about the "softer consumer demand" mentioned. Manufacturing growth needs to translate into better purchasing power for common people. Hope the next data shows improvement in consumer goods too.
The electricity sector growth from 0.6% to 4.1% is crucial for industrial development. As someone working in manufacturing, reliable power supply makes a huge difference in production efficiency. Great progress! âš¡
Consumer durables showing 5.2% growth after negative numbers is encouraging. This suggests people are starting to spend on bigger items again. Hope this reflects improved consumer confidence across the country.
The double-digit growth in basic metals and electrical equipment is particularly noteworthy. These are foundational industries that support many other sectors. Good to see core industries performing well.
While the overall numbers are positive, I hope this growth is sustainable and reaches smaller towns and rural areas. Often, economic recovery remains concentrated in urban centers. Let's hope for more inclusive growth.