Index of Industrial Production development slows to 4% in August 2025, dragged by consumer-facing sectors

Growth in industrial exercise in India slowed to 4% in August 2025 from its 6-month excessive development of 4.3% in July. Growth was dragged down by the buyer durables and non-durables sectors, in addition to slower development in manufacturing, capital items, and infrastructure sectors, authorities information confirmed.

On the opposite hand, mining exercise, the first items sector, and electrical energy output noticed a constructive turnaround.

Data on the Index of Industrial Production (IIP), launched by the Ministry of Statistics and Programme Implementation on Monday (September 29, 2025), confirmed that development within the index this August was significantly quicker than the 0% development seen in August final 12 months.

“This information must be learn with warning because it captures neither the tariff nor GST impact which have been within the information and affected sentiment in enterprise,” Madan Sabnavis, Chief Economist on the Bank of Baroda stated. “Tariffs have been carried out from Aug twenty seventh whereas GST advantages kicked in late September,” he added.

The mining and quarrying sector specifically noticed a big turnaround. It grew 6% in August 2025, a 14-month excessive, snapping a four-month streak of contractions.

The second sector to see a sturdy turnaround was the first items sector, which noticed development coming in at a seven-month excessive of 5.2%. The electrical energy sector grew at a five-month excessive of 4.1% in August 2025.

The manufacturing sector, nevertheless, slowed to three.8% in August 2025, down from 6% in July. This was faster than the 1.2% development the sector noticed in August final 12 months.

Similarly, development within the capital items sector slowed in August 2025 to 4.4% from 6.7% in July 2025. This was, nevertheless, faster than the 0% seen in August final 12 months.

Growth within the infrastructure and development items sector remained in double digits, at 10.6%, though this was slower than the expansion seen in July 2025 of 13.7%.

Consumer-focused sectors noticed development slowing. The development within the shopper durables sector slowed to three.5% in August 2025 from 7.3% in July and 5.4% in August final 12 months. The shopper non-durables sector noticed exercise contracting 6.3%, the worst efficiency in eight months.