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Key Points

India's industrial production showed strong recovery with 3.5% growth in July 2025. The manufacturing sector was the standout performer with 5.4% expansion. Infrastructure and construction goods recorded the highest growth at 11.9%, reflecting government capital expenditure push. However, mining sector performance remained weak with a 7.2% decline during the same period.

Key Points: India IIP Growth Hits 3.5% in July 2025 Led by Manufacturing Surge

  • Manufacturing sector leads with 5.4% growth in July 2025
  • Infrastructure and construction goods surge by 11.9% year-on-year
  • 14 out of 23 manufacturing groups show positive growth
  • Mining sector declines by 7.2% despite overall industrial growth
2 min read

India's Index of industrial production records growth of 3.5% in July 2025

India's industrial production rose to 3.5% in July 2025, with manufacturing up 5.4% and infrastructure goods growing 11.9%, driven by government capex.

"Government-led infrastructure push: Infrastructure and construction recorded the strongest IIP growth - Dipti Deshpande, Crisil Ltd"

New Delhi, August 28

India's Index of Industrial Production (IIP) grew by 3.5 per cent in July 2025, up from 1.5 per cent in June 2025, according to the data released by Ministry of Statistics & Programme Implementation.

New Delhi [India], August 28 (ANI): India's Index of Industrial Production (IIP) grew by 3.5 per cent in July 2025, up from 1.5 per cent in June 2025, according to the data released by Ministry of Statistics & Programme Implementation.

Sector-wise, manufacturing grew by 5.4 per cent, electricity by 0.6 per cent, while mining saw a decline of 7.2 per cent.

The overall IIP index for July 2025 stood at 155.0, compared to 149.8 in July 2024. Within manufacturing, 14 out of 23 industry groups showed positive growth, led by basic metals (12.7 per cent), electrical equipment (15.9 per cent), and other non-metallic mineral products (9.5 per cent).

Key drivers included items like MS slabs, electric heaters, transformers, and cement.

As per use-based classification, the indices were: Primary Goods (147.6), Capital Goods (119.7), Intermediate Goods (174.1), Infrastructure/Construction Goods (201.0), Consumer Durables (136.3), and Consumer Non-Durables (147.8).

Compared to July 2024, the highest growth was seen in Infrastructure/Construction Goods (11.9 per cent), followed by Intermediate Goods (5.8 per cent) and Consumer Durables (7.7 per cent).

India's Index of Industrial Production recorded a year-on-year growth of 1.5 per cent in June 2025.

Commenting on the data, Dipti Deshpande, Principal Economist, Crisil Ltd, said, "Government-led infrastructure push: Infrastructure and construction recorded the strongest IIP growth (11.9 per cent in July vs 6.7 per cent in June) among major use-based sectors."

Deshpande added that this reflects frontloading of the Centre and state government's capital expenditure, mainly on infrastructure.

She added, "The coming months could see some softening of these exports, weighed by higher US tariffs and from slower growth with trade partners. But an improvement in domestic consumption, particularly led by stronger rural demand, could provide some offset."

"In the absence of a trade deal between India and US, some sectors will have to brace for a bigger impact if US tariffs persist at these rates," she further added.

- ANI

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Reader Comments

P
Priya S
But mining sector decline of 7.2% is worrying. We need to balance industrial growth with sustainable practices. Hope the government addresses this soon.
A
Arjun K
Infrastructure growth at 11.9% is fantastic! This means more roads, bridges, and development projects across the country. Great for job creation too 💪
M
Michael C
The US tariff situation could be problematic for exports. Hope our trade negotiators are working on solutions. Domestic consumption needs to pick up to compensate.
S
Shreya B
Consumer durables growth at 7.7% shows people are spending again! This is positive for our economy. Maybe rural demand is finally recovering after the tough years.
K
Karthik V
While the numbers look good, I hope this growth translates to better job opportunities for the youth. Industrial growth should mean more employment across sectors.

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