Tuesday, 04 Nov, 2025
Industrial performance in the current fiscal year has displayed considerable fluctuations. Image Source: PixaBay
The steady 4 percent growth in industrial production underscores the resilience of India’s manufacturing and power sectors, even as mining remains under mild pressure.
India’s industrial output maintained steady growth in September 2025, with the Index of Industrial Production (IIP) registering a rise of 4.0 percent, unchanged from the Quick Estimate of August 2025. The data released by the Ministry of Statistics and Programme Implementation (MoSPI) indicates that the industrial sector continued its stable performance despite external challenges and sectoral fluctuations.
The Quick Estimates of the IIP stood at 152.8 in September 2025, compared to 146.9 in the same month last year, reflecting a consistent expansion in overall industrial activity. Among the three major sectors, manufacturing remained the principal driver of growth, recording an increase of 4.8 percent. The electricity sector grew by 3.1 percent, signalling sustained power demand, while the mining sector saw a marginal contraction of 0.4 percent, mainly due to lower mineral output. The sectoral indices for the month were recorded at 111.2 for mining, 154.3 for manufacturing, and 213.3 for electricity.
Within the manufacturing sector, 13 out of 23 industry groups at the two-digit level of the National Industrial Classification registered positive growth in September 2025 compared to the same month last year. The top performing segments were manufacture of basic metals, which grew by 12.3 percent; manufacture of electrical equipment, which expanded sharply by 28.7 percent; and manufacture of motor vehicles, trailers, and semi-trailers, which rose by 14.6 percent.
In the basic metals segment, items such as MS slabs, hot-rolled coils and sheets of mild steel, and flat products of alloy steel contributed significantly to the overall growth. The electrical equipment industry recorded higher production of electric heaters, small transformers, and electrical apparatus for switching or protecting electrical circuits, including switchgear, circuit breakers, and control or meter panels. The automobile and transport equipment segment also saw robust activity, driven by strong output of auto components and accessories, commercial vehicles, and axles, supported by improving demand in both domestic and export markets.
The steady 4 percent growth in industrial production underscores the resilience of India’s manufacturing and power sectors, even as mining remains under mild pressure. Economists suggest that continued momentum in core manufacturing segments such as metals, automobiles, and electrical equipment could help sustain industrial recovery in the coming months and strengthen overall economic performance in the second half of 2025–26.
Source: Ministry of Statistics and Programme Implementation
Industrial performance in the current fiscal year has displayed considerable fluctuations. Activity slowed notably during the first quarter (April–June), reflecting weaker demand and seasonal factors, but gathered momentum from July onwards as production levels improved across several key sectors. The pickup since mid-year suggests a gradual recovery in manufacturing and related industries, supported by improving domestic consumption and a modest revival in investment activity.
However, growth in India’s core infrastructure industries comprising coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity showed signs of moderation in September. Output in these eight core sectors, which together account for more than 40 percent of the country’s overall industrial production, expanded by 3 percent year-on-year, marking a three-month low. Provisional data released earlier this month indicated that the slowdown was largely driven by weaker performance in sectors such as crude oil, cement, and electricity, even as steel and fertilisers provided some offsetting gains.
Economists note that while the softening in core sector output could weigh slightly on the overall industrial momentum, the broader manufacturing uptick seen in recent months points to underlying resilience. Continued policy support, infrastructure investment, and easing supply constraints are expected to help sustain growth in the coming quarters, although global demand uncertainty and elevated input costs remain key risks.
"Buoyed by stocking ahead of the GST-rationalisation fuelled demand during the festive season, the IIP growth for the month of September 2025 remained steady at 4 percent, shrugging off the slowdown seen in the core sector growth. The expansion in manufacturing output accelerated to 4.8 percent in September 2025 from 3.8 percent in August 2025, despite an adverse base, even as the mining and electricity segments witnessed a deterioration in their YoY growth performance between these months. Overall, the combination of GST rate rejig, pent-up demand and the early festive onset appears to have boosted demand in September-October 2025, which is expected to augur well for the growth in manufacturing output in October 2025 as well. While the GST rationalisation may support demand for regular use/smaller ticket items post the festive season, the sustenance of the buoyancy in demand for big-ticket items remains to be seen," said Aditi Nayar, chief economist, ICRA.
