India’s Index of Industrial Production (IIP) rose 4% in August 2025, up from 3.5% in July, showing a steady rebound in industrial activity.

Mining led the gains with a 6% jump, a sharp recovery from the 7.2% contraction in July. Electricity output also improved, rising 4.1% compared with 3.7% in the previous month, reflecting a stronger energy supply for industrial and commercial use.

Manufacturing growth eased to 3.8% from 6% in July, indicating uneven momentum across sectors.

Within key segments, primary goods grew by 5.2%, capital goods increased by 4.4%, and infrastructure goods rose by 10.6%, signalling continued investment-led activity.

Consumer durables increased by 3.5%, but consumer non-durables fell by 6.3%, indicating persistent weakness in demand-driven areas.

Earlier in September, data showed India’s eight core infrastructure industries grew 6.3% year-over-year in August, up from 3.7% in July. A rebound in steel and coal output boosted industrial momentum, though weakness in crude oil and natural gas continued to weigh on growth.

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