The growth, boosted by a stronger manufacturing sector, marks an improvement from the previous year, though core industry growth slowed significantly.
NEW DELHI
India’s industrial production recorded a 4% year-on-year growth in September 2025, maintaining the same pace as August, according to data released by the Ministry of Statistics. The growth, based on the Index of Industrial Production (IIP), reflects sustained recovery momentum in the country’s manufacturing and infrastructure sectors.
The manufacturing sector, which contributes significantly to employment and economic expansion, registered a robust 4.8% rise in September, higher than 3.8% in August. Of the 23 industry groups, 13 showed positive growth, with key contributors being the manufacture of basic metals (12.3%), electrical equipment (28.7%), and motor vehicles, trailers, and semi-trailers (14.6%).
Electricity generation rose 3.1% during the month, while the mining sector remained a weak spot, contracting by 0.4%.
According to use-based classification, capital goods production — a crucial indicator of investment activity — grew by 4.7%, reflecting healthy industrial investment that is likely to generate more jobs and income in the coming quarters.
The consumer durables segment, including air conditioners, televisions, and refrigerators, surged 10.2% in September, indicating rising disposable incomes and strong festive demand. The infrastructure and construction goods category maintained double-digit growth of 10.2% for the second consecutive month, buoyed by ongoing government-led projects in highways, railways, and ports.
Economists say the steady performance of the manufacturing and infrastructure sectors highlights India’s resilience amid global uncertainties. With capital goods and consumer demand showing strength, industrial growth is expected to remain on a stable trajectory heading into the next quarter.