The Index of Industrial Production (IIP) growth rate for September 2025 was recorded at 4%, the slowest pace in three months. The slowdown follows a 4.12 percent rise in August.
The growth rates of the three sectors, including Mining, Manufacturing and Electricity for September are (-)0.4%, 4.8% and 3.1%, respectively.
As per the NSO data, within the manufacturing sector, 13 out of 23 industry groups have recorded a positive growth in September 2025 over September 2024.
The top three positive contributors for the month of September 2025 are Manufacture of basic metals (12.3%), Manufacture of electrical equipment (28.7%) and Manufacture of motor vehicles, trailers and semi-trailers (14.6%).
The overall index grew 3% in the April-September 2025 period, the first half of the financial year 2025-26. This is the slowest in at least five years, the period for which data is readily available.
The index grew 24% in the first half of 2021-22, owing to the low base of the previous pandemic-affected year 2020-21. In the first half of 2022-23, the index grew 7%, which slowed to 6.3% and 4.1% in the corresponding periods of 2023-24 and 2024-25, respectively.
Among the use-based categories, construction goods and consumer durables registered impressive growth of 10.5% and 10.2%, respectively, during September 2025 over September 2024. This was followed by growth in intermediate goods (5.3%), capital goods (4.7%), and primary goods (1.4%), reflecting a broad-based expansion in industrial activity, Rajeev Juneja, President, PHDCCI said.
Secretary General and CEO, Ranjeet Mehta said, “The momentum in industrial growth, particularly in manufacturing and construction-related segments, indicates improving domestic demand and rising capacity utilization amid continued policy support coupled with tax rationalization measures such as targeted GST reduction.”