Key Points

India's industrial sector maintained its growth momentum in August 2025 with a 4% year-on-year increase. The mining sector outperformed with 6% growth while manufacturing expanded by 3.8%. Basic metals production was particularly strong, surging over 12% during the period. Infrastructure and construction goods showed the most robust growth at 10.6%, indicating continued investment in development projects.

Key Points: India Industrial Output Grows 4% in August 2025 IIP Data

  • Industrial production accelerated to 4% growth in August from 3.5% in previous month
  • Mining sector showed strongest performance with 6% year-on-year expansion
  • Basic metals manufacturing surged 12.2% led by steel products and pipes
  • Infrastructure and construction goods recorded impressive 10.6% growth rate
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All India Index of Industrial Production recorded a 4% YoY growth in August 2025

India's industrial production rose 4% YoY in August 2025, with mining leading at 6% growth. Manufacturing expanded 3.8% while electricity generation increased 4.1%.

"The index is compiled with data received from source agencies, which in turn receive the data from the producing factories/establishments. - Ministry of Statistics"

New Delhi, September 29

India's industrial output, measured by the Index of Industrial Production (IIP), recorded a year-on-year growth of four per cent in August 2025, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

The growth in August came after the index had risen 3.5 per cent in July 2025. The Quick Estimates of IIP stood at 151.7 in August 2025, higher than 145.8 recorded in the same month last year.

"The index is compiled with data received from source agencies, which in turn receive the data from the producing factories/ establishments. These Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP," the ministry said.

Breaking down the August 2025 figures, the mining sector grew 6 per cent, manufacturing rose 3.8 per cent, and electricity generation increased 4.1 per cent. The indices for these three sectors stood at 113.5, 151.6 and 221.1, respectively.

Within the manufacturing sector, 10 out of 23 industry groups reported positive growth compared to August 2024. The top three contributors were the manufacture of basic metals, which grew by 12.2 per cent; coke and refined petroleum products, which expanded by 5.4 per cent; and motor vehicles, trailers, and semi-trailers, which rose by 9.8 per cent.

In the basic metals industry, items such as mild steel slabs, hot-rolled coils and sheets, and steel pipes and tubes helped drive growth. In petroleum products, diesel, petrol and liquefied petroleum gas were the main contributors. In motor vehicles, auto components, axles and commercial vehicles played a major role in the increase.

As per the use-based classification, primary goods recorded an index of 148.9, capital goods stood at 112.1, intermediate goods at 170.4, and infrastructure or construction goods at 200.8 in August 2025. The indices for consumer durables and consumer non-durables stood at 134.4 and 132.8, respectively, the release said.

The corresponding growth rates compared with August 2024 were 5.2 per cent for primary goods, 4.4 per cent for capital goods, five per cent for intermediate goods, and 10.6 per cent for infrastructure or construction goods. Consumer durables grew 3.5 per cent, while consumer non-durables declined by 6.3 per cent.

The ministry noted that based on this classification, the top three contributors to the growth of the IIP in August were primary goods, infrastructure or construction goods, and intermediate goods.

The data also showed that the indices for July 2025 were revised after updated information was received from the 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 ministry added that the next release of IIP data, for September, will be published on October 28.

- ANI

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Reader Comments

R
Rohit P
But why are consumer non-durables declining by 6.3%? This suggests common people are still struggling with purchasing power despite overall growth. Need to address this gap.
A
Arjun K
The growth in auto components and commercial vehicles shows our manufacturing sector is gaining momentum. Hope this translates to more jobs in the sector! 🚛
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Sarah B
As someone working in the steel industry, I can confirm the growth in basic metals. The demand for construction materials has been consistently strong across infrastructure projects.
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Vikram M
Mining sector growing at 6% is impressive! This indicates raw material availability for manufacturing is improving. Hope this sustainable growth continues.
M
Michael C
While the numbers look positive, I'm concerned about the manufacturing growth at 3.8% being lower than overall IIP. We need stronger manufacturing performance for true economic transformation.

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