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Updated Oct 28, 2025 · 20:05
Business India News Updated Oct 28, 2025

India's Industrial Growth Holds Steady at 4% Amid Manufacturing Boom

India's industrial output maintained steady growth at 4 percent in September 2025. The manufacturing sector showed strong performance with 4.8 percent expansion, while electricity generation grew by 3.1 percent. However, the mining sector experienced a slight contraction of 0.4 percent during the same period. Construction goods and consumer durables emerged as the top performers with growth rates exceeding 10 percent each.

India's industrial output growth steady at 4% in September

New Delhi, October 28

India's industrial growth remained stable in September 2025, with the Index of Industrial Production (IIP) showing a 4 per cent year-on-year increase.

The steady performance was supported by continued momentum in the manufacturing and electricity sectors.

The IIP growth rate for the month of August 2025 was 4.0 per cent which was 3.5 percent (Quick Estimate) in the month of July 2025.

The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of September 2025 are 0.4 per cent, 4.8 per cent and 3.1 per cent respectively.

The Quick Estimates of IIP stands at 152.8 against 146.9 in September 2024. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of September 2025 stand at 111.2, 154.3 and 213.3, respectively.

The robust performance of the manufacturing sector was largely driven by double-digit growth in key industries such as the manufacture of basic metals, electrical equipment, computer, electronic and optical products, motor vehicles, trailers and semi-trailers, and wood and wood products.

In contrast, the mining sector recorded a marginal contraction of (-) 0.4 per cent in September 2025 compared to 0.2 per cent in September 2024, he said.

Among the use-based categories, construction goods and consumer durables registered impressive growth of 10.5 per cent and 10.2 per cent, respectively, during September 2025 over September 2024. This was followed by growth in intermediate goods (5.3 per cent), capital goods (4.7 per cent), and primary goods (1.4 per cent), reflecting a broad-based expansion in industrial activity, he said.

Dr Ranjeet Mehta, Secretary General and CEO, PHDCCI said, "The momentum in industrial growth, particularly in manufacturing and construction-related segments, indicates improving domestic demand and rising capacity utilization amid continued policy support coupled with tax rationalization measures such as targeted GST reduction."

Commenting on the figures, Dharmakirti Joshi, Chief Economist, Crisil, said, "Overall, we expect India's gross domestic product growth at 6.5 per cent for the current fiscal, with risks tilted to the downside."

— ANI

Reader Comments

Priya S

While 4% growth is stable, I'm concerned about the mining sector contraction. We need to focus on sustainable mining practices while ensuring growth. The manufacturing numbers are encouraging though!

Arjun K

The growth in consumer durables at 10.2% is impressive! This indicates rising purchasing power and better living standards for middle-class families across India. Hope this trend continues! ✨

Sarah B

As someone working in the manufacturing sector, I can confirm the positive momentum. Our factory in Pune has been running at near full capacity for the last 6 months. Good to see this reflected in national data.

Vikram M

The steady 4% growth is better than many developed economies, but we should aim higher. With proper policy support and infrastructure development, India can easily achieve 6-7% industrial growth. Jai Hind!

Michael C

The electricity sector growth at 3.1% is crucial for sustaining industrial expansion. Hope the government continues to invest in power infrastructure to support this manufacturing boom.

Kavya N

While the numbers look good on paper, I wonder if this growth is reaching small and medium enterprises equally. Sometimes large corporations show growth while MSMEs struggle. Need more balanced development.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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