India’s factories and industries are picking up steam. The country’s industrial output, tracked by the Index of Industrial Production (IIP), climbed 4 percent in August 2025—the highest in seven months. This surge came mainly from booming mining and electricity sectors, according to a report from the PHD Chamber of Commerce and Industry (PHDCCI).
Mining led the charge with a solid 6 percent growth that month. That’s a big turnaround from July 2025’s drop of 7.2 percent. Electricity generation also jumped 4.1 percent, improving sharply from just 0.6 percent the previous month, said Hemant Jain, PHDCCI’s president.
Manufacturing kept pace with 3.8 percent growth. Out of 23 key industry groups, 10 showed gains, including double-digit jumps in basic metals, electrical equipment, and other transport equipment. Key drivers included items like mild steel slabs, hot-rolled coils, and steel pipes in basic metals; diesel, petrol, and liquefied petroleum gas in petroleum products; and auto components plus commercial vehicles in the motor vehicles sector.
On the consumer side, durables like appliances made a strong comeback, rising 5.2 percent after a slump in July. Infrastructure and capital goods shone even brighter, hitting 10.6 percent growth.
PHDCCI Secretary General and CEO Ranjeet Mehta pointed out the trends: “Strong momentum in infrastructure and primary goods, but consumer demand feels a bit soft.” He added that the new GST 2.0 policy could help by sparking more spending and supporting steady economic growth.
The Ministry of Statistics and Programme Implementation released the data on Monday. August’s IIP quick estimates reached 151.7, up from 145.8 a year earlier. Breaking it down: primary goods hit 148.9, capital goods 112.1, intermediate goods 170.4, and infrastructure/construction goods 200.8. Consumer durables stood at 134.4, while non-durables were at 132.8.
The ministry said primary goods, infrastructure/construction goods, and intermediate goods fueled most of the IIP growth. They also updated July’s figures with fresh data from agencies. Those quick estimates had a 90.96 percent response rate, while July’s final revisions reached 92.99 percent. Look for September 2025 IIP data on October 28.
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