Data Alert
IIP growth slows to 4% in Aug from 6-mo high of 4.3% in Jul
This story was originally published at 17:50 IST on 29 September 2025
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--India Aug IIP growth 4.0% vs 0.0% year ago
--Informist poll estimated Aug IIP growth at 5.5%
--India Jul IIP growth revised to 4.3% vs 3.5% provisional
--India Apr-Aug IIP growth 2.8% vs 4.3% year ago
--India Aug mining sector output growth 6.0% vs -4.3% year ago
--India Aug manufacturing sector output growth 3.8% vs 1.2% year ago
--India Aug electricity sector output growth 4.1% vs -3.7% year ago
--India Aug primary goods output growth 5.2% vs -2.6% year ago
--India Aug capital goods output growth 4.4% vs 0.0% year ago
--India Aug intermediate goods output growth 5.0% vs 3.1% year ago
--India Aug infrastructure goods output growth 10.6% vs 2.7% year ago
--India Aug consumer durables output growth 3.5% vs 5.4% year ago
--India Aug consumer non-durables output growth -6.3% vs -4.4% year ago
NEW DELHI – India's industrial output, dragged down by the consumer non-durables sector, showed sluggish growth in August. Index of Industrial Production fell to 4.0% in August from a six-month high in July, data released by the statistics ministry showed Monday. The IIP growth for July was revised to 4.3%.
At 4.0%, the August IIP growth print was well below expectations. Economists polled by Informist had estimated growth in industrial output at 5.5% in August. Industrial output, as measured by the Index of Industrial Production, had risen 0.0% in August 2024.
The output of the manufacturing sector, which has the biggest weightage in the IIP, eased to 3.8% in August, against 6.0% seen in July. The mining and the electricity sectors, on the other hand, showed improvement in August after underperformance in July due to low demand on account of monsoon rains across the country.
The mining sector's output rose 6% in August after contracting for four consecutive months. The sector's production fell 7.2% in July. On-month, the mining sector's index increased 5.4%. The output of the electricity sector grew 4.1% in the month, against 3.7% in July.
Within the use-based classification, except for consumer non-durables, all five sectors showed expansion. The consumer non-durables sector—which has 15% weight in the index—showed the worst in eight months with a contraction of 6.3%. The sector's output had inched 0.5% in July.
"Consumer non-durables witnessed the steepest contraction in eight months, while the growth in consumer durables halved to 3.5% from 7.3% in July, which may reflect inventory management to avoid stranded taxes ahead of the GST rationalisation," ICRA Ltd Chief Economist Aditi Nayar said in a note.
The infrastructure goods, with 10.6% jump in production, registered double-digit growth for the second consecutive month in August. The sector's output was also revised to a nearly two-year high of 13.7% in July.
Industrial output rose 2.8% in Apr-Aug, sharply lower than the 4.3% growth in the same period of 2024. Going ahead, as the rationalised goods and services tax rates take effect, there may be an uptick in consumption demand during the festive season. This is likely to augur well for the manufacturing sector in September and October, according to Nayar. "While this may partly offset the adverse impact of the US tariffs and penalties, an unfavourable base may constrain expansion in the IIP in these months," Nayar said.
The following tables detail year-on-year changes in industrial output in August:
| Aug-25 | Jul-25 | Aug-24 | |
| General | 4.0% | 4.3% | 0.0% |
| Mining | 6.0% | (-)7.2% | (-)4.3% |
| Manufacturing | 3.8% | 6.0% | 1.2% |
| Electricity | 4.1% | 3.7% | (-)3.7% |
| Primary goods | 5.2% | (-)0.7% | (-)2.6% |
| Capital goods | 4.4% | 6.8% | 0.0% |
| Intermediate goods | 5.0% | 6.1% | 3.1% |
| Infrastructure/construction goods | 10.6% | 13.7% | 2.7% |
| Consumer durables | 3.5% | 7.3% | 5.4% |
| Consumer non-durables | (-)6.3% | 0.5% | (-)4.4% |
| Mining | Electricity | Manufacturing | General | |||||
| FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | |
| April | (-)0.2% | 6.8% | 1.7% | 10.2% | 3.1% | 4.2% | 2.6% | 5.2% |
| May | (-)0.1% | 6.6% | (-)4.7% | 13.7% | 3.2% | 5.1% | 1.9% | 6.3% |
| June | (-)8.7% | 10.3% | (-)1.2% | 8.6% | 3.7% | 3.5% | 1.5% | 4.9% |
| July | (-)7.2% | 3.8% | 3.7% | 7.9% | 1.2% | 4.7% | 4.3% | 5.0% |
| August | 6.0% | (-)4.3% | 4.1% | (-)3.7% | 3.8% | 1.2% | 4.0% | 0.0% |
| September | 0.2% | 0.5% | 4.0% | 3.2% | ||||
| October | 0.9% | 2.0% | 4.4% | 3.7% | ||||
| November | 1.9% | 4.4% | 5.5% | 5.0% | ||||
| December | 2.7% | 6.2% | 3.7% | 3.7% | ||||
| January | 4.4% | 2.4% | 5.8% | 5.2% | ||||
| February | 1.6% | 3.6% | 2.8% | 2.7% | ||||
| March | 1.2% | 7.5% | 4.0% | 3.9% | ||||
| Mining | Manufacturing | Electricity | General | |
| FY25 | 3.0% | 4.1% | 5.2% | 4.0% |
| FY24 | 7.5% | 5.5% | 7.1% | 5.9% |
| FY23 | 5.8% | 4.7% | 8.9% | 5.2% |
| FY22 | 12.2% | 11.8% | 7.9% | 11.4% |
| FY21 | (-)7.8% | (-)9.6% | (-)0.5% | (-)8.4% |
| FY20 | 1.6% | (-)1.4% | 1.00% | (-)0.8% |
| FY19 | 2.9% | 3.9% | 5.2% | 3.8% |
| FY18 | 2.3% | 4.6% | 5.4% | 4.4% |
| FY17 | 5.3% | 4.4% | 5.8% | 4.6% |
| FY16 | 4.3% | 2.8% | 5.7% | 3.3% |
| FY15 | (-)1.4% | 3.8% | 14.8% | 4.0% |
| FY14 | (-)0.1% | 3.6% | 6.1% | 3.3% |
| FY13 | (-)5.3% | 4.8% | 4.0% | 3.3% |
Source: Ministry of Statistics and Programme Implementation
End
Reported by Krity Ambey
Edited by Akul Nishant Akhoury
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