India’s IIP (Index of Industrial Production) Grows 3.5% in July 2025

India’s Index of Industrial Production (IIP) recorded a 3.5% year-on-year growth in July 2025, showing a significant improvement from 1.5% in June 2025. This performance was mainly driven by the 5.4% growth in the manufacturing sector, despite a sharp contraction in mining. The IIP is a key indicator used to measure the performance of various sectors of the economy, offering a snapshot of industrial health.

Sectoral Performance: Manufacturing Leads

The IIP figure for July 2025 stands at 155.0 compared to 149.8 in July 2024, reflecting an overall expansion in industrial output.

• Manufacturing: Grew by 5.4%, emerging as the primary driver.
• Electricity: Registered a modest 0.6% growth.
• Mining: Declined sharply by -7.2%, weighing down the overall index.

Within manufacturing, 14 out of 23 industry groups reported positive growth. Notably,

• Manufacture of basic metals: Up by 12.7%
• Manufacture of electrical equipment: Up by 15.9%
• Manufacture of non-metallic mineral products: Up by 9.5%

These gains were supported by the increased production of MS slabs, HR coils, electric heaters, transformers, cement, and marble slabs.

Methodology and Revisions

• The IIP is compiled using data from various source agencies and production units, and the estimates are subject to subsequent revision based on additional data.
• The Quick Estimates for July 2025 were compiled at a response rate of 89.5%
• Final estimates for June 2025 were revised with a 93.1% response rate
• Going forward, IIP data will be released on the 28th of each month

Use-Based Classification Insights

The IIP is also analysed based on usage patterns of goods, which provides insights into underlying economic activities,

• Primary Goods: Declined by -1.7%
• Capital Goods: Grew by 5.0%
• Intermediate Goods: Up by 5.8%
• Infrastructure/Construction Goods: Jumped by 11.9%
• Consumer Durables: Rose by 7.7%
• Consumer Non-Durables: Slight increase of 0.5%

The top three contributors to overall IIP growth based on usage classification were,

• Infrastructure/Construction Goods
• Intermediate Goods
• Consumer Durables

These figures reflect a healthy momentum in both investment-led and consumer-driven sectors, suggesting resilience in India’s industrial landscape.