Industrial output up 4% in August YoY as mining, electricity surge 

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Summary

The mining sector recorded a year-on-year growth of 6%, while the manufacturing sector, including the production of basic metals, motor vehicles, trailers, and semi-trailers, grew by 9.8%.

With the mining sector experiencing 6% growth, the All India Index of Industrial Production (IIP) recorded a 4.0% year-on-year growth in August 2025.
With the mining sector experiencing 6% growth, the All India Index of Industrial Production (IIP) recorded a 4.0% year-on-year growth in August 2025. | Credits: FILE

The All India Index of Industrial Production (IIP) registered a 4% year-on-year growth in August 2025, compared to a 3.5% (quick estimate) year-on-year increase in July 2025, the Ministry of Statistics and Programme Implementation stated in a release on Monday.

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The growth rates of the three sectors — mining, manufacturing, and electricity — for August 2025 are 6%, 3.8%, and 4.1%, respectively. The quick estimates of the IIP stand at 151.7, compared to 145.8 in August 2024. The Indices of Industrial Production for the mining, manufacturing, and electricity sectors stood at 113.5, 151.6, and 221.1, respectively, for the same period.

According to the ministry, in the manufacturing sector, 10 of the 23 industry groups at the NIC two-digit level experienced positive growth in August 2025 compared to August 2024. “Manufacture of basic metals” at 12.2%, “manufacture of coke and refined petroleum products” at 5.4%, and “manufacture of motor vehicles, trailers, and semi-trailers” at 9.8% were the leading contributors to the August growth.

The ministry stated that within the industry group, MS slabs, HR coils and sheets of mild steel, and pipes and tubes of steel drove the growth in the basic metal segment.

Meanwhile, in the petroleum products category, diesel, petrol/motor spirit, and liquefied petroleum gas (LPG) played a substantial role in driving growth. Higher output in auto components, axles, and commercial vehicles played a significant role in driving growth in the "motor vehicles, trailers and semi-trailers” category.

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Based on the use-based classification, the indices for August 2025 are 148.9 for primary goods, 112.1 for capital goods, 170.4 for intermediate goods, and 200.8 for infrastructure/construction goods. Additionally, the indices for consumer durables and non-durables are 134.4 and 132.8, respectively.

In August 2025, the IIP growth rates by use-based classification compared to August 2024 are: 5.2% for primary goods, 4.4% for capital goods, 5.0% for intermediate goods, 10.6% for infrastructure/construction goods, 3.5% for consumer durables, and a decline of 6.3% in consumer non-durables. The top three positive contributors to IIP growth in August, based on this classification, are primary goods, infrastructure/construction goods, and intermediate goods.

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