Industrial output grows 3.5% in July, led by manufacturing sector

India’s Index of Industrial Production (IIP) grew by 3.5% year-on-year in July 2025, primarily driven by a 5.4% increase in the manufacturing sector, according to data released by the Ministry of Statistics and Programme Implementation on Thursday.

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The Quick Estimate places the IIP at 155.0 for July, compared to 149.8 in the same month last year. The performance of the three major sectors was mixed: while manufacturing saw solid growth, the mining sector contracted sharply by 7.2%, and electricity output increased marginally by 0.6%.

Within the manufacturing sector, 14 out of 23 industry groups recorded positive growth. The top contributors included the manufacture of basic metals (up 12.7%), electrical equipment (up 15.9%), and other non-metallic mineral products (up 9.5%). Growth in these categories was driven by specific product groups. For basic metals, key items like MS slabs, HR coils and sheets of mild steel, and alloy steel flat products played a significant role.

In electrical equipment, growth was supported by items such as electric heaters, switchgear and circuit breakers, and small transformers. The non-metallic mineral products category benefited from increased production of all types of cement, cement clinkers, and polished or unpolished marble slabs.

Based on use-based classification, several segments also saw notable growth. Infrastructure and construction goods grew by 11.9%, intermediate goods by 5.8%, capital goods by 5.0%, and consumer durables by 7.7%. Consumer non-durables registered a slight growth of 0.5%, while primary goods saw a decline of 1.7%. Among these, the top three positive contributors to overall IIP growth in July were infrastructure/construction goods, intermediate goods, and consumer durables.

The IIP data for June 2025 has also undergone final revision, reflecting a growth of 1.5% based on updated information from source agencies. The July Quick Estimates and June final figures were compiled at weighted response rates of 89.5% and 93.1% respectively.

As per the revised release schedule, IIP data will now be published on the 28th of every month, or the next working day if it falls on a holiday.

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