IIP growth for August recorded at 4%, strong growth in infra

The Index of Industrial Production (IIP) growth rate for the month of August is recorded at 4% from earlier 3.5% in the month of July.

The growth rates of the three sectors including Mining, Manufacturing and Electricity for August are 6%, 3.8% and 4.1% respectively, data by the Ministry of Statistics & Programme Implementation (MoSPI) said.

Advertisement

The top three positive contributors for August were Manufacture of basic metals (12.2%), Manufacture of coke and refined petroleum products (5.4%) and Manufacture of motor vehicles, trailers and semi-trailers (9.8%).

Bank of Baroda in a report has said on a FYTD basis for April to August 2025, the industrial output registered slower growth at 2.8% compared with 4.3% in April to August 2024.

This is led by a continued weakness in mining and electricity output, even as manufacturing production has been largely steady. While external headwinds continue to impart a high degree of uncertainty to the domestic economy, it is likely to be offset by prudent government policies.

GST and income tax reforms, coupled with the onset of the festive season is likely to spur a revival in consumption demand, which is also likely to translate into higher production, it added.

Moody’s Ratings on Monday affirmed India’s long-term local- and foreign-currency issuer ratings, as well as the local-currency senior unsecured rating, at Baa3.

“The stable outlook incorporates India’s gradually improving fiscal metrics and resilient growth prospects compared with peers. However, fiscal accommodation in the context of the uncertain global macroeconomic outlook, including revenue-eroding measures, could impede progress towards debt reduction and exacerbate already weak debt affordability,” Moody’s said in its statement.

Hemant Jain, President, PHDCCI highlighted that among use-based categories, consumer durables grew at a robust at 5.2% in August 2025 from a negative year-on-year growth in July 2025. The infrastructure/capital goods recorded a double digit growth of 10.6% in August 2025.