India’s Index of Industrial Production (IIP) showed a growth of 3.5% in July 2025, reflecting steady expansion in the country’s industrial output. This growth comes after a weaker 1.5% rise in June, highlighting a stronger rebound in key industries. The latest data released under the revised IIP calendar shows that manufacturing sector was the main driver, while mining lagged behind.
The IIP is an important indicator of industrial health, measuring the performance of mining, manufacturing, and electricity sectors. For July 2025, the index stood at 155.0, up from 149.8 in July 2024, signalling positive momentum despite sectoral challenges.

Manufacturing Sector Leads with 5.4% Growth

The manufacturing sector posted an impressive 5.4% growth, boosting the overall industrial performance. Out of 23 industry groups, 14 recorded positive growth. The biggest contributors were:

• Manufacture of basic metals (12.7%)
• Electrical equipment (15.9%)
• Other non-metallic mineral products (9.5%)

Products such as MS slabs, HR coils, flat alloy steel, electric heaters, circuit breakers, transformers, cement, and marble slabs played a significant role in driving output. This sector’s performance shows strong domestic demand and a revival in key industries linked to infrastructure and construction.

Mixed Performance across Mining and Electricity

While manufacturing thrived, the mining sector recorded a sharp decline of 7.2%, weighing down overall growth. The electricity sector showed only 0.6% growth, reflecting sluggish demand and supply-side challenges.
Despite this, the recovery in manufacturing offset the decline in mining, keeping the overall IIP growth in positive territory. Experts note that stable electricity growth and recovery in mining will be essential for sustaining industrial expansion in the coming months.

Use-Based Classification Highlights Strong Demand in Infrastructure

Based on use-based classification, India’s industrial output in July 2025 showed strong demand across key segments, with infrastructure and construction goods rising by 11.9%, reflecting increased investments in housing, roads, and large-scale projects. Intermediate goods grew by 5.8% and capital goods by 5.0%, pointing to a steady revival in production and investment activity. Consumer durables registered a robust 7.7% growth, driven by higher demand for appliances and electronics, while consumer non-durables grew modestly at 0.5%. However, primary goods recorded a decline of 1.7%, slightly weighing down the overall industrial momentum.

Outlook for Industrial Growth

The July 2025 IIP data highlights that manufacturing and infrastructure demand are leading India’s industrial recovery, even though mining and electricity remain weak. With the government focusing on infrastructure development and domestic consumption showing improvement, the industrial sector is expected to maintain stable growth.
The Quick Estimates will be revised as more data becomes available, but the current figures underline the resilience of India’s industrial economy. Industry experts believe that if mining output improves and electricity demand rises in the coming months, overall industrial growth could accelerate further.