The All India Index of Industrial Production (IIP) recorded a 4% y/y growth in August 2025 as against 3.5% recorded in July, according to the data released by the Ministry of Statistics & Programme Implementation on Monday.

The growth can be mainly attributed to better than expected performance of the mining sector. The growth rates of the three sectors, mining, manufacturing and electricity for the month of August stood at 6%, 3.8% and 4.1%, respectively.   

The quick estimates of IIP stands at 151.7 against 145.8 in August 2024. The indices of industrial production for the mining, manufacturing and electricity sectors for the month of August 2025 stand at 113.5, 151.6 and 221.1 respectively.

Aditi Nayar, chief economist at Icra, said that despite a low base, the IIP growth unexpectedly eased to 4% in August 2025 from the upward revision to 4.3% in July 2025. The slowdown was led by manufacturing growth, which eased sharply to 3.8% from 6% in July. Mining output witnessed a y/y expansion after a gap of four months, and growth in electricity generation inched up to a 5-month high.

Within the manufacturing sector, 10 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in August 2025 over August 2024. The top three positive contributors for the month of August 2025 are – “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%).  In the industry group “manufacture of basic metals”, item groups “MS slabs”, “HR coils and sheets of mild steel” and “pipes and tubes of steel” have shown significant contribution in growth.