Growth in industrial exercise in India slowed to 4% in August 2025 from its 6-month excessive growth of 4.3% in July. Growth was dragged down by the patron durables and non-durables sectors, in addition to slower growth in manufacturing, capital items, and infrastructure sectors, authorities information confirmed.
On the opposite hand, mining exercise, the first items sector, and electrical energy output noticed a optimistic turnaround.
Data on the Index of Industrial Production (IIP), launched by the Ministry of Statistics and Programme Implementation on Monday (September 29, 2025), confirmed that growth in the index this August was significantly sooner than the 0% growth seen in August final yr.
“This data should be read with caution as it captures neither the tariff nor GST effect which have been in the news and affected sentiment in business,” Madan Sabnavis, Chief Economist on the Bank of Baroda stated. “Tariffs were implemented from Aug 27th while GST benefits kicked in late September,” he added.
The mining and quarrying sector in explicit noticed a major turnaround. It grew 6% in August 2025, a 14-month excessive, snapping a four-month streak of contractions.
The second sector to see a strong turnaround was the first items sector, which noticed growth coming in at a seven-month excessive of 5.2%. The electrical energy sector grew at a five-month excessive of 4.1% in August 2025.
The manufacturing sector, nonetheless, slowed to 3.8% in August 2025, down from 6% in July. This was faster than the 1.2% growth the sector noticed in August final yr.
Similarly, growth in the capital items sector slowed in August 2025 to 4.4% from 6.7% in July 2025. This was, nonetheless, faster than the 0% seen in August final yr.
Growth in the infrastructure and development items sector remained in double digits, at 10.6%, though this was slower than the growth seen in July 2025 of 13.7%.
Consumer-focused sectors noticed growth slowing. The growth in the patron durables sector slowed to 3.5% in August 2025 from 7.3% in July and 5.4% in August final yr. The shopper non-durables sector noticed exercise contracting 6.3%, the worst efficiency in eight months.