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Industrial output growth slows to 4.0% in August 2025
Sep-29-2025

India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), slowed to 4.0 per cent in the month of August 2025 as against a revised growth rate of 4.3 per cent in July 2025, due to slowdown in manufacturing sector. The government has revised upwards industrial growth figure for July 2025 to 4.3 per cent from the provisional estimate of 3.5 per cent released in the previous month. During the April-August period of FY26, the country's total industrial production grew by 2.8 per cent compared to 4.3 per cent a year ago.

The manufacturing sector, which comprises the largest component of the index, recorded growth of 3.8 per cent in August 2025, which is lower compared to 6.0 per cent in previous month. However, mining production surged to 6.0 per cent in August 2025 from a contraction of 7.2 per cent in July 2025. Electricity production also rose to 4.1 per cent in August 2025 from 3.7 per cent in the previous month. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for August 2025 stand at 113.5, 151.6 and 221.1 respectively.

As per use-based classification, the output of primary goods surged to 5.2 per cent in August 2025 from a contraction of 0.7 per cent in the July 2025. The capital goods segment growth slipped to 4.4 per cent in August 2025 from 6.8 per cent in the previous month. The intermediate goods segment growth was 5.0 per cent in the reporting month over 6.1 per cent in the previous month. Infrastructure/construction reported a growth of 10.6 per cent in the month under review over 13.7 per cent growth in July 2025. Consumer durables (or white goods production) growth slowed down to 3.5 per cent in August 2025 from 7.3 per cent in July 2025. In August 2025, consumer non-durables output contracted by 6.3 per cent as against a growth of 0.5 per cent a year ago.

The indices stand at 148.9 for Primary Goods, 112.1 for Capital Goods, 170.4 for Intermediate Goods and 200.8 for Infrastructure/Construction Goods for the month of August 2025. Further, the indices for Consumer durables and Consumer non-durables stand at 134.4 and 132.8 respectively.

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