India’s Index of Industrial Production (IIP) for August 2025 rose 4% month-on-month, up from 3.5% in July, reflecting a steady rebound in industrial activity, according to the Ministry of Statistics & Programme Implementation (MoSPI).
Sectoral Performance
- Mining: The sector led the expansion with a 6% growth, rebounding sharply from a 7.2% contraction in July.
- Electricity: Power generation strengthened, rising 4.1%, compared to 3.7% in July, supporting industrial and commercial activity.
- Manufacturing: Growth moderated to 3.8%, down from 6% in July, indicating mixed momentum across different industrial segments.
Production Categories
- Primary goods: Expanded 5.2%, reflecting robust extraction and basic materials production.
- Capital goods: Rose 4.4%, signaling continued investment-driven activity.
- Infrastructure goods: Surged 10.6%, underlining strong public and private infrastructure development.
- Consumer durables: Grew 3.5%, while consumer non-durables contracted 6.3%, highlighting persistent weakness in demand-driven segments.
Earlier data on India’s eight core infrastructure industries showed 6.3% year-on-year growth for August, up from 3.7% in July, corroborating the industrial recovery narrative.
Insights
The rebound was supported by steel and coal production, which boosted overall industrial momentum. However, energy sector weakness, particularly in crude oil and natural gas, continued to weigh on growth. The mixed performance across manufacturing and consumer goods indicates that while investment-driven sectors are thriving, consumer demand remains uneven.
Summary
India’s IIP grew 4% in August 2025, driven by strong mining (6%) and electricity (4.1%) output, while manufacturing growth moderated to 3.8%. Capital and infrastructure goods saw robust gains, reflecting investment-led momentum, whereas consumer non-durables contracted, showing lingering weakness in demand-led segments. Overall, the data points to a steady industrial rebound, supported by mining, power, steel, and coal production, even as certain energy and consumer segments face challenges.
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