India’s industrial production bounced back in August, with the key index climbing 4 percent—a seven-month high, experts say. This growth highlights a solid recovery in mining, electricity, and heavy-investment sectors, offering hope for the broader economy.
Hemant Jain, president of the PHD Chamber of Commerce and Industry, pointed to strong gains in mining and electricity as the main drivers. Mining output surged 6 percent, flipping from a 7.2 percent drop in July. Electricity production jumped 4.1 percent, up sharply from just 0.6 percent the month before.
Manufacturing held steady with 3.8 percent growth, as 10 out of 23 major industry groups posted gains compared to last August. Leading the pack were basic metals, which soared 12.2 percent, and motor vehicles, trailers, and semi-trailers at 9.8 percent. Other standouts included electrical equipment and other transport gear, both hitting double-digit increases.
Looking at use-based data, consumer durables like appliances grew 5.2 percent after shrinking last month. Infrastructure and capital goods shone brightest, rising 10.6 percent. These numbers show heavy investment in primary goods and infrastructure fueling the momentum, even as everyday consumer demand stays a bit subdued.
Dr. Ranjeet Mehta, secretary general and CEO of PHDCCI, credits upcoming GST 2.0 reforms for helping strike a balance between boosting investments and sparking demand. “The policy should kickstart consumption while driving sustainable growth,” he said.
Overall, this uptick in India’s IIP signals optimism. Experts see it as a strong base for continued industrial expansion and wider economic recovery in the months ahead.
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