India's industrial sector demonstrated resilience in August 2025, with production expanding by 4.0% compared to a 3.5% increase in July 2025. The Index of Industrial Production (IIP) for August 2025 reached 151.7, a notable increase from 145.8 in the same period last year. The growth was primarily propelled by the mining sector, which saw a significant output increase of 6.0%.

Manufacturing, a key component of the IIP, also contributed positively with a 3.8% expansion. The electricity sector bolstered the overall industrial performance, recording a 4.1% growth. Within the manufacturing sector, particular areas stood out, including the "Manufacture of basic metals" which saw a robust increase of 12.2%, and "Manufacture of motor vehicles, trailers and semi-trailers," which rose by 9.8%. The "Manufacture of coke and refined petroleum products" also showed strong performance, with a 5.4% increase. Key items driving growth in the basic metals segment included MS slabs, HR coils and sheets of mild steel, and pipes and tubes of steel. In the petroleum products category, diesel, petrol/motor spirit, and liquefied petroleum gas (LPG) were major contributors. Growth in the motor vehicle segment was supported by higher output in auto components, axles, and commercial vehicles. Overall, 10 out of 23 industry groups within the manufacturing sector demonstrated positive growth compared to August 2024.

The data indicates a broad-based recovery, with notable contributions from specific sub-sectors. Infrastructure and construction goods experienced the highest growth rate at 10.6%, reflecting substantial investments in public projects such as highways, railways, and ports. Primary goods expanded by 5.2%, intermediate goods by 5.0%, and capital goods by 4.4%, signaling sustained investment activities in the economy. Consumer durables recorded a moderate increase of 3.5%. However, consumer non-durables experienced a 6.3% contraction, highlighting a potential softening in demand for fast-moving consumer goods.

The August 2025 data is based on a weighted response rate of 90.96%, while the final revised data for July 2025 was compiled with a response rate of 92.99%. The next IIP data release, covering September 2025, is scheduled for October 28, 2025. The recent GST rationalization is expected to stimulate consumption during the festive season, which is anticipated to positively influence manufacturing output in September and October 2025, as older inventories are cleared.