Industrial progress jumps to four-month excessive of three.5%

Industrial progress jumped to a four-month excessive of three.5% in July 2025, pushed by a broad-based restoration within the manufacturing, electrical energy, capital, and shopper items sectors.

However, the Index of Industrial Production for July 2025, launched by the Ministry of Statistics and Programme Implementation on Thursday, grew at a slower tempo than the 5% progress seen in July final yr.

The manufacturing sector grew at a six-month excessive of 5.4% in July 2025, in comparison with 4.7% in July 2024. The electrical energy sector noticed progress returning in July 2025 after two months of contraction. It grew 0.6% in July 2025, in comparison with 7.9% in July final yr.

Mining contraction

The mining sector (-7.2%), nevertheless, continued to contract in July 2025, its fourth consecutive month of contraction. 

According to Madan Sabnavis, chief economist on the Bank of Baroda, the mining sector’s comparatively poor efficiency may be attributed to the monsoon in addition to to subdued demand.

‘Positive signal for funding’

The capital items sector grew by 5% in July 2025, on high of an already excessive base of 11.7% in July 2024.

“Overall, the metals and equipment segments have performed effectively, with primary metals, fabricated metals, and electrical equipment registering double digit progress,” Mr. Sabnavis famous. “Non-metallic mineral merchandise too registered a powerful progress of 9.5%. This is a optimistic signal for funding happening within the financial system.”

The shopper durables sector grew at a seven-month excessive of seven.7% in July 2025, whereas the patron non-durables sector grew at an eight-month excessive of 0.5%.