India industrial production increased 4 percent in August 2025

1. Overall Growth Trend:

• Index of Industrial Production (IIP) increased 4.0 percent annually in August 2025.
• Increase in slight under forecasts of 5%
• July 2025 IIP revised upward to 4.3%
• Cumulative growth (April-August FY26): 2.8 % vs 4.3% in April-August FY25.

2. Sectoral Performance:

• Strong Performers:
• Mining: 6.0% growth (improving after x -7.2% in July)
• Infrastructure/Construction: 10.6% 10.6% increase.
• Electricity: 4.1 percent growth (better in comparison with 3.7 percent better)

Moderate/Weak Performers:

• Production: 3.8% (reduced to 6.0 in July)
• Capital Goods: 4.4% (weakened from 6.8%)
• Consumer Durables: 3.5 percent (moderate growth)

3. Concerning Indicators:

• Consumer Non-durables: Sharp 6.3% fall.
• Private Investment: Berestrained behavior apparent.
• Rural Demand: Is still weak.

4. Key Economic Implications:

• Infrastructure development fuelled by government investments.
• Poor domestic demand that impacts on production.
• Having some support in the form of festive season demand.
• Rural-urban consumption polarization in the non-durables reduces.

5. Outlook:

• The development is still skewed.
• The mining and infrastructure are the most vibrant.
• Consumer goods segment needs to be monitored.
• Recovery in the revival of the economy through private investment.