Industrial Production Grows 4% in August: Govt Data

India's industrial production grew at 4% in August, mainly due to better performance by the mining sector, according to government data released on Monday.

The Index of Industrial Production (IIP) growth rate for July has been revised upwards to 4.3% from the earlier estimate of 3.5%. In August 2024, the IIP recorded flat growth.

"With the mining sector growth at 6%, the All India Index of Industrial Production (IIP) recorded a 4% year-on-year growth in August 2025," the National Statistics Office (NSO) said.

The mining sector output in August 2024 had shrunk by 4.3%.

The manufacturing sector, which accounts for more than three-fourths of the index, expanded by 3.8% in August this year, up from 1.2% in the year-ago month.

Manufacturing of 'basic metals' and 'motor vehicles, trailers and semi-trailers' reported a healthy growth of 12.2% and 9.8%, respectively.

The NSO data further showed that the growth in the electricity segment was 4.1% against a decline of 3.7% in August 2024.

During the April-August period of the current fiscal, the IIP growth was slower at 2.8% compared to 4.3% in the year-ago period.

Aditi Nayar, Chief Economist, Icra, said that despite a low base, the IIP growth unexpectedly eased to 4% in August 2025 from the upward revision to 4.3% in July 2025.

The slowdown was entirely led by manufacturing growth, which eased sharply to 3.8% from 6% 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, she said.

"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.

As per use-based classification, NSO data showed that the capital goods segment grew by 4.4% in August 2025 compared to a flat growth in the year-ago period.

Consumer durables (or white goods production) growth slowed to 3.5% from 5.4% in August 2024.

In August 2025, consumer non-durables output shrank by 6.3% against a contraction of 4.4% in the year-ago month.

Infrastructure/construction reported a growth of 10.6% in August 2025, up from 2.7% expansion a year ago.

The data also showed that the output of primary goods increased by 5.2% against a contraction of 2.6% growth in August 2024.

The expansion in the intermediate goods segment was 5% in August against 3.1% a year ago.