India’s Industrial Output Expands 4 Per Cent In August, Mining Leads Recovery While Manufacturing Slows

India’s industrial growth registered a 4 per cent rise in August 2025, supported by a strong rebound in mining, though manufacturing showed signs of cooling, latest data from the National Statistics Office (NSO) revealed on Monday (29 September).

The Index of Industrial Production (IIP) was buoyed by a 6 per cent surge in mining activity, reversing a 4.3 per cent contraction in the same month last year.

Manufacturing, which carries the largest weight in the index, expanded by 3.8 per cent — up from 1.2 per cent a year earlier, though sharply lower than July’s 6 per cent. Electricity generation also staged a recovery, climbing 4.1 per cent after a 3.7 per cent fall in August 2024.

Several segments showed healthy gains: ‘basic metals’ manufacturing jumped 12.2 per cent, while ‘motor vehicles, trailers and semi-trailers’ rose 9.8 per cent.

Infrastructure and construction goods output was particularly strong, up 10.6 per cent compared with 2.7 per cent growth a year earlier. Capital goods rose 4.4 per cent, while intermediate goods expanded by 5 per cent.

However, consumer durables slowed to 3.5 per cent growth, and non-durables slipped into contraction, shrinking 6.3 per cent.

The NSO also revised July’s IIP growth upwards, from 3.5 per cent to 4.3 per cent. Despite this, cumulative growth for April–August slowed to 2.8 per cent, compared with 4.3 per cent in the same period last year.

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