India's Index of Industrial Production (IIP) recorded a year-on-year growth of 4.0% in August 2025, reflecting a steady rise in industrial activity across major sectors. The growth was supported by strong performance in mining, basic metals, petroleum products, and motor vehicles, according to the Ministry of Statistics and Programme Implementation (MOSPI).

Sector-wise Growth

The three core sectors are Mining, Manufacturing, and Electricity, all of which registered positive growth during August 2025.

• Mining rose by 6.0%, recovering from a contraction in the same month last year.
• Manufacturing recorded 3.8% growth, led by basic metals and motor vehicles.
• Electricity expanded by 4.1%, showing stability in power generation.
• The General Index climbed to 151.7 in August 2025 compared to 145.8 in August 2024.

Strong Push from Key Industries

When talking about the manufacturing sector, 10 out of 23 industry groups posted growth. The top contributors were:

• Manufacture of basic metals: The Growth of 12.2%, supported by higher production of MS slabs, HR coils, sheets of mild steel and steel pipes.
• Manufacture of coke and refined petroleum products: Up 5.4%, driven by higher output of diesel, petrol, and LPG.
• Manufacture of motor vehicles, trailers and semi-trailers: Up 9.8%, boosted by strong performance in auto components, axles, and commercial vehicles.

Use-Based Classification

As per the use-based classification, the IIP data for August 2025 showed the following trends:

• Primary Goods rose 5.2% with an index value of 148.9.
• Capital Goods grew 4.4%, reaching an index of 112.1.
• Intermediate Goods increased 5.0% to 170.4.
• Infrastructure/Construction Goods surged 10.6%, the highest among all categories, with an index of 200.8.
• Consumer Durables posted moderate growth of 3.5%, standing at 134.4.
• Consumer Non-Durables, however, declined by 6.3%, falling to 132.8.

The top three contributors to growth in August were Primary Goods, Infrastructure/Construction Goods, and Intermediate Goods.

Comparative Performance

In July 2025, the IIP grew by 3.5% (revised final estimate). The improvement to 4.0% in August indicates a steady industrial recovery. The average IIP growth for the period April to August 2025 now stands at 2.8%, compared to 4.3% in the same period last year.

Industry-Wise Snapshot

A closer look at the National Industrial Classification (NIC-2008) reveals:

• Electrical equipment grew 11.4%.
• Fabricated metal products rose 8.7%.
• Other transport equipment showed strong growth of 10.5%.
• Pharmaceuticals contracted by 9.2%, while printing and reproduction of recorded media fell sharply by 16.3%.
• Tobacco products recorded the highest surge at 23.4%, though their weight in IIP is small.

Data Collection and Revisions

The Quick Estimate for August 2025 was compiled at a weighted response rate of 90.96%, while the final estimate for July 2025 was based on 92.99% data coverage. MOSPI has also announced that in the future, the Quick Estimate of IIP will be released on the 28th of every month (or the next working day, if the 28th is a holiday).

The 4.0% rise in India's Index of Industrial Production in August 2025 highlights continued resilience in industrial activity, led by mining, infrastructure, and metals. While certain industries like pharmaceuticals and consumer non-durables showed weakness, strong growth in capital goods, automobiles, and construction-linked products signals healthy growth in India's industrial sector.