New Delhi: India’s industrial production maintained steady momentum in September, with the Index of Industrial Production (IIP) growing 4% year-on-year, according to the latest quick estimates released by the Ministry of Statistics and Programme Implementation (MoSPI). The growth rate remained unchanged from August, signalling sustained, though moderate, industrial activity in the country’s manufacturing and infrastructure sectors.
The overall IIP stood at 152.8 in September, compared with 146.9 in the same month last year, reflecting continued expansion in factory output. Among the three major sectors, manufacturing once again emerged as the key growth driver, while mining activity weakened slightly and electricity generation registered a modest rise.
The manufacturing sector grew by 4.8%, underlining steady demand conditions across industries. Electricity output rose by 3.1%, indicating stable energy consumption linked to industrial and household usage. However, the mining sector contracted marginally by 0.4%, suggesting limited improvement in raw material extraction despite rising industrial demand.
Within manufacturing, 13 out of 23 industry groups posted positive growth in September compared to a year earlier. The strongest performers included basic metals, which grew 12.3%; electrical equipment, which surged 28.7%; and motor vehicles, trailers and semi-trailers, which expanded 14.6%. The sharp rise in electrical equipment production indicates strong investment activity in the power and electronics sectors, while higher output of basic metals and automobiles points to growing momentum in infrastructure and consumer demand.
Specific product categories such as MS slabs, HR coils and sheets of mild steel, and flat products of alloy steel contributed significantly to the rise in metal manufacturing. Likewise, increased production of electric heaters, small transformers, and switchgear and circuit protection apparatus boosted the electrical equipment segment. In the automotive sector, higher output of auto components, commercial vehicles, and axles supported the overall increase.
On a use-based classification, industrial growth was broad but uneven. The infrastructure and construction goods segment registered a robust 10.5% growth, suggesting that government-led infrastructure spending and private construction activity continue to support the industrial economy.
Consumer durables production rose sharply by 10.2%, reflecting firm festive-season demand and improving household sentiment, while intermediate goods grew 5.3%, indicating healthy supply-chain activity.
Capital goods output, a key indicator of investment in productive capacity, increased by 4.7%, showing signs of a gradual recovery in capital formation. In contrast, consumer non-durables contracted by 2.9 percent, implying softness in demand for everyday consumables.
Overall, the data show that while India’s industrial sector remains on a growth trajectory, expansion is largely concentrated in manufacturing and infrastructure-linked goods. The weakness in mining and consumer non-durables points to lingering supply-side and consumption constraints.
The ministry also finalized the IIP data for August, incorporating updated information from reporting agencies. The compilation of the latest Quick Estimates was based on a weighted response rate of 88.67% for September and 92.61% for August. The next set of industrial output data, for October, is scheduled for release on November 28, 2025.
Economists expect the near-term outlook to remain stable, supported by ongoing infrastructure activity and a resilient manufacturing base, though global demand uncertainties and uneven domestic consumption could moderate momentum in the coming months.