IIP Data: India's Industrial Output Better Than Expected In Sep Led By Manufacturing— Motilal Oswal Report

Industrial activity is expected to remain steady in the coming months, supported by robust government capex, easing inflation, and the positive impact of GST rationalization on consumer demand. Investment-driven sectors are likely to sustain their momentum, while consumer goods may see a gradual improvement as rural demand recovers. Some pressure from weak exports and global trade frictions may persist, but the overall industrial outlook remains stable..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.In September 2025, Index of Industrial Production growth remained almost unchanged at 4% YoY vs Aug’25, led by the manufacturing sector. Electricity and mining output contracted (due to monsoon).IIP performed better than expectations in Sep’25, despite the seasonally weak Shraadh period and ongoing tariff-related uncertainty weighing on external demand.Manufacturing output grew 4.8% in Sep'25, higher than 3.8% YoY in Aug’25. The details of the manufacturing sector suggest that 33% of the sub-sectors contracted in Sep’25, lower than 44% in Aug’25. .Among manufacturing segments, 13 out of 23 industry groups recorded an increase in output, with the highest growth seen in the manufacture of basic metals, followed by electrical equipment and motor vehicles, trailers, and semi-trailers. Among export-oriented segments, textiles grew 1.2% in Sep'25 after posting two consecutive contractions in Aug’25 and Jul’25. Leather and related products grew 2.1% in Sep’25, marking the first expansion after 12 months. However, wearing apparel contracted. On a use-based classification, investment goods output remained robust, reflecting sustained capex momentum. In contrast, consumer goods output showed a mixed trend, with a recovery from previous contractions..Notably, consumer durables output grew at a 10-month high of 10.5% YoY in Sep’25 (while consumer non-durables output continued to contract), aided by GST rationalization measures and a demand boost driven by the festive season. IIP growth picked up in recent months, with Q2 FY26 growth at 4.1%, higher than 2% in Q1 FY26.Industrial activity is expected to remain steady in the coming months, supported by robust government capex, easing inflation, and the positive impact of GST rationalization on consumer demand. Investment-driven sectors are likely to sustain their momentum, while consumer goods may see a gradual improvement as rural demand recovers. Some pressure from weak exports and global trade frictions may persist, but the overall industrial outlook remains stable..Click on the attachment to read the full report:.IIP Growth Stays At 4% In September, Manufacturing Sees Uptick.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IIP Data: India's Industrial Output Better Than Expected In Sep Led By Manufacturing— Motilal Oswal Report

September's Index of Industrial Production growth remained almost unchanged at 4% YoY vs Aug’25.

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