CHENNAI: India’s industrial production rose 4 percent year-on-year in August 2025, according to official data released on Monday. The figure was slightly below economists’ expectations of around 5 percent but marked continued expansion in overall activity. The July number was revised upward to 4.3 percent growth from earlier estimates of about 3.5 percent.
Sector-wise, mining recorded the sharpest rebound with 6% growth, reversing a 7.2 percent contraction in July. Manufacturing, which makes up the bulk of the index, grew 3.8 percent, moderating from a 6% rise in the previous month. Electricity output increased 4.1 percent, improving from 3.7 percent in July.
Within categories, consumer durables expanded by about 3.5 percent, but consumer non-durables fell sharply by 6.3 percent, highlighting weak demand in essential goods. Capital goods output rose 4.4 percent, slower than July’s 6.8 percent growth, pointing to softer investment activity.
For the April–August period of the current financial year, industrial production grew 2.8 percent, compared with 4.3 percent in the same period last year.
Analysts noted that the recovery in mining and steady electricity generation are positives, but the slowdown in manufacturing and contraction in non-durables underline patchy demand conditions. The softer rise in capital goods suggests that private investment remains subdued, which could weigh on medium-term growth prospects.
Economists believe the data may strengthen the case for policy support if consumption and investment trends do not improve. The Reserve Bank of India, which meets later this week, is expected to keep rates unchanged, though some analysts see room for future cuts to support growth.
Looking ahead, sustaining industrial output above 4% will depend on demand revival in consumer goods, a pickup in capital spending, and supportive global conditions. External risks such as commodity price swings, slowing global trade, and supply chain disruptions could add pressure in the coming months.