ADITYA RAJ DAS / NEW DELHI
INDIA’S industrial production growth accelerated to a four-month high of 3.5 per cent in July this year, driven by strong performance in the manufacturing sector, according to official data released today.
Industrial output had last recorded this level of growth at 3.9 per cent in March 2025. According to the data released by the Ministry of Statistics and Programme Implementation, the factory output had expanded by five per cent in the same month last year. Among the three major components of IIP, manufacturing advanced by 5.4 per cent in July as compared to 3.7 per cent in the previous month. Electricity generation logged marginal rise of 0.6 per cent. However, mining output remained in contraction, declining by 7.2 percent.
The corresponding growth rates of IIP as per use-based classification in July 2025 over July 2024 stood at 11.9 percent in Infrastructure or Construction Goods. Growth of 7.7 per cent was registered in Consumer durables, 5.8 percent in Intermediate goods, and five percent in Capital goods. Consumer non-durables rose modestly by half percent during the same month. Meanwhile, Primary goods saw a deceleration of 1.7 percent.
Sectoral Breakdown
The manufacturing sector expanded strongly by 5.4 per cent, offsetting a steep 7.2 per cent contraction in mining and modest 0.6 per cent growth in electricity. The overall IIP index stood at 155.0 in July 2025, compared with 149.8 in July 2024.
- Mining index: 107.7
- Manufacturing index: 156.9
- Electricity index: 221.5
Manufacturing Gains
Out of 23 industry groups in manufacturing, 14 reported positive growth.
- Basic metals rose 12.7 per cent, boosted by higher output of MS slabs, HR coils, and alloy steel.
- Electrical equipment surged 15.9 per cent with stronger production of heaters, switchgear, circuit breakers, and transformers.
- Non-metallic mineral products grew 9.5 per cent, led by cement, clinker, and polished marble.
Use-Based Classification Trends
The IIP by use categories reflected a mixed performance:
- Primary goods contracted 1.7 per cent.
- Capital goods grew 5.0 per cent.
- Intermediate goods rose 5.8 per cent.
- Infrastructure and construction goods saw the sharpest jump at 11.9 per cent, supported by public and private capex.
- Consumer durables increased 7.7 per cent, while consumer non-durables edged up 0.5 per cent.
The ministry noted that infrastructure, intermediate goods, and consumer durables were the key drivers of overall IIP growth in July.
Data Revision and Release Calendar
Alongside the July figures, MoSPI finalized the June 2025 IIP data after receiving updated inputs from reporting agencies. The Quick Estimates for July were compiled with a weighted response rate of 89.5 per cent, while the final data for June achieved 93.1 per cent.
As per the revised release calendar, the IIP will be published on the 28th of every month, or the next working day if the 28th is a holiday. The August 2025 data will be released on September 29.