Industrial Production Grows At 4 pc in August
As per the data released by the National Statistics Office (NSO), the country’s industrial output measured by index of industrial production or IIP growth rate for July has been revised upwards to 4.3 per cent from the earlier estimate of 3.5 per cent
New Delhi: Signalling a steady rebound in industrial activity in the country, India’s industrial production grew at 4 per cent in August from 3.5 per cent in July, mainly due to better performance by the mining sector, the government said on Monday.
As per the data released by the National Statistics Office (NSO), the country’s industrial output measured by index of industrial production or IIP growth rate for July has been revised upwards to 4.3 per cent from the earlier estimate of 3.5 per cent. “With the mining sector growth at 6 per cent, the all India IIP recorded a 4 per cent year-on-year growth in August 2025,” the NSO said.
The data also showed that mining led the gains with a robust expansion, a sharp turnaround from the 7.2 per cent contraction recorded in July, while the mining sector output in August 2024 had shrunk by 4.3 per cent. “The manufacturing sector, which accounts for more than three-fourths of the index, also expanded by 3.8 per cent in August this year, up from 1.2 per cent in the year-ago month,” the data said.
The NSO data further showed that manufacturing of basic metals and motor vehicles, trailers and semi-trailers reported a healthy growth of 12.2 per cent and 9.8 per cent, respectively. “The growth in the electricity segment was 4.1 per cent against a decline of 3.7 per cent in August 2024,” the data showed.
During the April-August period of the current fiscal, the IIP growth was slower at 2.8 percent compared to 4.3 per cent in the year-ago period. However, economists and analysts said that despite a low base, the IIP growth unexpectedly eased to 4 per cent in August 2025 from the upward revision to 4.3 per cent in July 2025.
“The slowdown was entirely led by manufacturing growth, which eased sharply to 3.8 per cent from 6 per cent in July 2025. In contrast, while mining output witnessed a year-on-year expansion after a gap of four months, growth in electricity generation inched up to a 5-month high,” said Aditi Nayar, chief economist, Icra Ltd.
“Looking ahead, the GST rationalisation is expected to boost consumption demand during the festive season, which is likely to augur well for manufacturing output in September-October 2025, once the older inventories are off the shelves,” Nayar added.