IIP Growth Rises 4% in August, Led by Strong Infrastructure Performance
Industrial output boosted by basic metals, motor vehicles, and petroleum sectors
New Delhi, Sep 30: The Index of Industrial Production (IIP) growth for August 2025 was recorded at 4%, up from 3.5% in July, driven by robust performance in manufacturing and infrastructure sectors, according to data released by the Ministry of Statistics & Programme Implementation (MoSPI).
The growth rates across key sectors were Mining 6%, Manufacturing 3.8%, and Electricity 4.1%. Top contributors to August’s growth included manufacture of basic metals (12.2%), coke and refined petroleum products (5.4%), and motor vehicles, trailers, and semi-trailers (9.8%).
On a fiscal-year-to-date basis (April–August 2025), industrial output expanded 2.8%, slower than 4.3% during the same period in 2024, largely due to weakness in mining and electricity, while manufacturing remained steady, Bank of Baroda noted.
The report added that government reforms in GST and income tax, along with the upcoming festive season, are expected to spur consumption demand, potentially translating into higher industrial production in the coming months.
Among use-based categories, consumer durables grew 5.2% in August, recovering from negative growth in July, while infrastructure/capital goods recorded double-digit growth of 10.6%, according to Hemant Jain, President of PHDCCI.
Moody’s Ratings on Monday affirmed India’s long-term issuer ratings at Baa3 with a stable outlook, highlighting the country’s resilient growth prospects despite global macroeconomic uncertainties.
