IIP Expands By 5 per cent in July 2024
The factory output, measured in terms of the index of industrial production or IIP, had expanded by five per cent in July 2024.The country’s industrial output earlier recorded this level of growth at 3.9 per cent in March 2025
New Delhi: With a good performance of the manufacturing sector, India’s industrial production growth significantly jumped to a 4-month high of 3.5 per cent in July this year as compared to a 1.5 percent rise in June. The better-than-expected output of the industrial sector tracks from manufacturing, which rose to a six-month high of 5.4 percent in July, compared with 3.7 percent in the previous month, the government said on Thursday.
The factory output, measured in terms of the index of industrial production or IIP, had expanded by five per cent in July 2024. The country’s industrial output earlier recorded this level of growth at 3.9 per cent in March 2025. However, the National Statistics Office (NSO) in its revised figure for June kept the pace of industrial production growth unchanged at 1.5 per cent as against the provisional estimates released last month.
As per the latest NSO data, the manufacturing sector's output growth rose to 5.4 per cent in July 2025 from 4.7 per cent in the year-ago month. “Mining production contracted by 7.2 per cent against a growth of 3.8 per cent recorded a year ago, while power production rose by a meagre 0.6 per cent in July 2025 against 7.9 per cent in the year-ago period,” the data showed.
During the April-July period of FY26, India’s total industrial production grew by 2.3 per cent compared to 5.4 per cent a year ago. "Encouragingly, growth in manufacturing output accelerated to a six-month high of 5.4 per cent in July 2025 from 3.7 per cent in June 2025, aided by construction inputs and consumer durables,” said Aditi Nayar, chief economist, head-research & outreach of Icra.
As per the data, the previous high in the manufacturing sector was recorded in January 2025 at 5.8 per cent. “The IIP growth accelerated appreciably to a four-month high of 3.5 per cent in July 2025 from 1.5 per cent in June 2025, led by a broad-based improvement across all the sectors. Nevertheless, the performance of the mining and electricity sectors remained weak, even as the effect of heavy rains eased somewhat in that month, weighing on the overall IIP growth,” she said.
Looking ahead, Icra said, the improved transmission of monetary easing and the recent announcement of the forthcoming GST rationalisation could help shore up urban consumption, although discretionary consumption may see some deferment until lower tax rates are brought in. “This postponement of discretionary purchases along with the disruptive monsoon rainfall in some regions over the last few weeks could contain the IIP growth sub-3 per cent in August 2025,” she said.
