Indian Industrial Production Reached a 4-month Peak of 3.5% Growth in July, Manufacturing Driving the Increase

New Delhi, August 28, 2025 – India’s industrial production continued to improve in July, hitting a fourth straight month of gains at 3.5%, according to official data released on Thursday. With consistently increasing domestic demand, government initiatives, and infrastructure development, industrial production contributes immensely to the country’s overall economic growth.

The National Statistics Office (NSO) reported that the manufacturing output increased by 5.4% in July 2025, compared to 4.7% in July 2024.

Sector-Wise Performance

The Mining sector experienced a 7.2% downturn compared to the 3.8% growth in July 2023. The Power sector experienced a lower level of growth at 0.6%, a stark deviation from an exceptional and very strong 7.9% growth during the same period last year.

Comparative Trend

The Index of Industrial Production (IIP) recorded industrial output growth of 3.9% in March 2025. The National Sample Office (NSO) further confirmed that the industrial growth rate was 1.5% for June 2025, following a 3.9% growth rate in May. There has been no change in the previous estimates.

April-July FY26 Performance

In the first four months of FY26 (April–July), India’s industrial production increased by 2.3%, significantly lower than the same period in FY25, which saw a 5.4% increase. India’s trend in industrial growth remains resilient, led by manufacturing, but with larger contributions from mining and comparatively lower contributions from power generation, contributing to overall restricted growth.

Outlook

The manufacturing industry is expected to maintain its growth momentum, driven by robust domestic demand and gradually expanding government initiatives. However, progress may be tempered by a weak global recovery and sluggish mining activity. Investors should closely monitor policy reforms, infrastructure capital spending, and trends in exports and commodities to anticipate potential opportunities better and mitigate emerging risks.

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