India's industrial production grew at 4 per cent in August, driven by better performance by the mining sector, as per government data released on Monday. The Index of Industrial Production (IIP) growth rate for July has been revised upwards to 4.3 per cent from the earlier estimate of 3.5 per cent. In August 2024, the IIP recorded flat growth.
"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 National Statistics Office (NSO) said. 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, expanded by 3.8 per cent in August this year, up from 1.2 per cent in the corresponding month last year. 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 NSO data further showed that the growth in the electricity segment was 4.1 per cent against a decline of 3.7 per cent in August 2024. During the April-August period of the current fiscal, the IIP growth was slower at 2.8 per cent as compared to 4.3 per cent in the corresponding period last year.
Aditi Nayar, Chief Economist, Icra, said that despite a low base, the IIP growth unexpectedly eased to 4 per cent in August from the upward revision to 4.3 per cent in July. The slowdown was entirely led by manufacturing growth, which eased sharply to 3.8 per cent from 6 per cent in July. In contrast, while mining output witnessed a year-on-year expansion after a gap of four months, growth in electricity generation rose to a 5-month high.
"Looking ahead, 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," said Nayar.
As per use-based classification, NSO data showed that the capital goods segment grew by 4.4 per cent in August 2025 as compared to a flat growth in the year-ago period. Consumer durables growth slowed to 3.5 per cent from 5.4 per cent in August 2024. In August 2025, consumer non-durables output went down by 6.3 per cent against a contraction of 4.4 per cent in the year-ago month.
Infrastructure/construction reported a growth of 10.6 per cent in August 2025, up from 2.7 per cent a year ago. The data also showed that the output of primary goods increased by 5.2 per cent against a contraction of 2.6 per cent growth in August 2024. The expansion in the intermediate goods segment was 5 per cent in August as against 3.1 per cent a year ago.
Also read: Key infrastructure sector growth at 13-month peak
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