India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), accelerated to a 4-month high of 3.5 per cent in July 2025 due to good performance of manufacturing sector. IIP had expanded by 5 per cent in July 2024. The country’s industrial output earlier recorded this level of growth at 3.9 per cent in March 2025. The National Statistics Office (NSO) in its revised figure for June kept the pace of industrial production growth unchanged at 1.5 per cent as against the provisional estimates released last month. During the April-July period of FY26, the country’s total industrial production grew by 2.3 per cent compared to 5.4 per cent a year ago.

The manufacturing sector, which comprises the largest component of the index, output growth rose to 5.4 per cent in July 2025 from 4.7 per cent in the year-ago month. Mining production contracted by 7.2 per cent against a growth of 3.8 per cent recorded a year ago. Power production rose by a meagre 0.6 per cent in July 2025 against 7.9 per cent in the year-ago period. The Indices of Industrial Production for the Manufacturing, Mining and Electricity sectors for the month of June 2025 stood at 156.9, 107.7 and 221.5 respectively.

Within the manufacturing sector, 14 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in July 2025 over July 2024. The top three positive contributors for the month of July 2025 are - ‘Manufacture of basic metals’ (12.7%), ‘Manufacture of electrical equipment’ (15.9%) and ‘Manufacture of other non-metallic mineral products’ (9.5%).

As per use-based classification, the output of primary goods contracted by 1.7 per cent in July 2025 against 5.9 per cent growth a year earlier. The capital goods segment growth decelerated to 5 per cent in July 2025 from 11.7 per cent in the year-ago period. The expansion in the intermediate goods segment was 5.8 per cent in the month under review against 7 per cent a year ago. Infrastructure/construction reported a growth of 11.9 per cent in July 2025, up from a 5.5 per cent expansion in the year-ago period. Consumer durables (or white goods production) growth slowed to 7.7 per cent during the reporting month against a growth of 8.2 per cent in July 2024. In July 2025, consumer non-durables output recorded a meagre growth of 0.5 per cent as against a contraction of 4.2 per cent a year ago.

The indices stood at 147.6 for Primary Goods, 119.7 for Capital Goods, 174.1 for Intermediate Goods and 201.0 for Infrastructure/ Construction Goods for the month of July 2025. Further, the indices for Consumer durables and Consumer non-durables stand at 136.3 and 147.8 respectively.