- India's industrial output grew by 4% in August, as against 3.5% in July
- Manufacturing activity rose 3.8% in August, compared to 6% growth in the preceding month
- Mining output increased 6% in August, reversing July's 7.2% decline
India's industrial output grew by 4% in August as against the growth of 4.3% in July, according to the Index of Industrial Production (IIP) data released by the Ministry of Statistics and Programme Implementation on Monday.
Manufacturing activity grew by 3.8% on an annual basis in August, compared to 6% last month. Within the manufacturing sector, 10 out of 23 industry groups recorded a positive growth in August 2025. Mining output, another key component of the IIP, rose 6% year-on-year in August versus a fall of 7.2% last month. Electricity production increased 4.1% as against 3.7% in the previous month.
While IIP growth registered a rather stable path, this data should be read with caution as it captures neither the tariff nor GST effect which have been in the news and impacted business sentiment, said Madan Sabnavis, chief economist at Bank of Baroda. The US tariffs up to 50% were implemented from Aug. 27, whereas GST benefits kicked in late September.
"We could be expecting September to also be a less impressive month for IIP with consumer spending being held on to due to the prospective implementation of GST 2.0," he said, suggesting that growth will tend to bounce back in October and November.
IIP Internals (Use-Based)
Primary goods output expanded by 5.2% in August versus a fall of 0.7% in the preceding month.
Capital goods grew by 4.4% versus 6.8% in July.
Intermediate goods grew 5% versus a growth of 6.1% in the preceding month.
Infrastructure goods grew 10.6% versus 13.7% last month.
Consumer durables grew 3.5% versus 7.3% in the previous month.
Consumer non-durables output fell 6.3% versus a fall of 0.5% in the previous month.
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