India’s IIP Growth at 4.0% in September 2025

India’s industrial sector continued to display resilience in September 2025, with the Index of Industrial Production (IIP) registering a 4.0 % year-on-year growth, according to data released by the National Statistical Office (NSO). The IIP serves as a crucial indicator for measuring the level of industrial activity across mining, manufacturing, and electricity sectors, reflecting the broader health of India’s industrial economy.

Overall Performance

• The IIP stood at 152.8 (Base Year 2011-12 = 100) in September 2025, rising from 146.9 recorded in the same month of the previous year.
• This growth indicates a steady recovery and sustained industrial momentum despite global economic headwinds and domestic demand fluctuations.
• The 4.0 % expansion underscores continued improvement in manufacturing output, moderate gains in electricity production, and a marginal contraction in mining activity.

Sectoral Analysis

• Mining: The sector contracted slightly by 0.4 %, primarily due to lower production in certain mineral categories and seasonal factors affecting extraction activities.
• Manufacturing: The largest component of the IIP, accounting for nearly 78 % of the total index, recorded a 4.8 % growth, indicating robust demand in several industries.
• Electricity: Output in the electricity sector rose by 3.1 %, supported by higher power consumption in industrial and residential segments.

Out of the 23 manufacturing industry groups (at the 2-digit NIC level), 13 recorded positive growth, suggesting broad-based expansion within the manufacturing ecosystem.

Top Performing Industry Groups

The major drivers within the manufacturing sector were,

• Manufacture of Basic Metals — up 12.3 %, reflecting strong performance in steel and aluminum production, driven by infrastructure and construction demand.
• Manufacture of Electrical Equipment — surged 28.7 %, supported by increased investment in renewable energy components, power distribution systems, and consumer electronics.
• Manufacture of Motor Vehicles, Trailers, and Semi-trailers — increased 14.6 %, indicating rising automobile sales and pent-up demand in both domestic and export markets.

These high-growth industries contributed significantly to the overall manufacturing sector’s momentum.

Use-Based Classification Analysis

The IIP is also analyzed by use-based classification, which reveals the nature of demand within the economy.

Use-Based Category	Index (Sep 2025)	Growth (%) YoY	Interpretation
Primary Goods	143.3	+1.4 %	Modest growth indicating steady raw material output.
Capital Goods	122.0	+4.7 %	Reflects investment momentum in machinery and equipment.
Intermediate Goods	169.4	+5.3 %	Suggests strong demand in goods used for further production.
Infrastructure/Construction Goods	197.6	+10.5 %	Signifies robust government and private spending in infrastructure.
Consumer Durables	146.5	+10.2 %	Indicates festive season boost and strong retail demand.
Consumer Non-Durables	141.5	-2.9 %	A decline due to subdued demand for daily-use goods.

The Infrastructure/Construction Goods and Consumer Durables segments showed double-digit growth, emerging as the key positive contributors to the overall industrial performance. This growth pattern suggests an uptrend in investment and consumption, two critical drivers of India’s economic activity.

Overall Assessment

• The September 2025 IIP data paints a picture of balanced industrial growth, led by manufacturing and infrastructure sectors, even as mining activity remained weak.
• The resilience in capital and intermediate goods production signals improving industrial capacity utilization, while consumer durables reflect strengthening domestic demand.
• However, the negative growth in consumer non-durables indicates uneven recovery across consumption categories, suggesting that rural demand and daily-use product markets remain under some pressure.

Static Takeaways

• IIP growth in September 2025: 4.0 % year‑on‑year.
• Indices (Base 2011‑12=100): IIP = 152.8 in Sept. 2025; previous year = 146.9.
• Sectoral growth: Mining = ‑0.4 %, Manufacturing = 4.8 %, Electricity = 3.1 %.
• Top manufacturing groups: basic metals (+12.3 %), electrical equipment (+28.7 %), motor vehicles (+14.6 %).