India's industrial production growth accelerated to a 4-month high of 3.5 per cent in July from 1.5% in June, data released by the National Statistical Office (NSO) on Thursday showed.
The growth comes due to good performance of manufacturing sector, according to official data released on Thursday.
The country's industrial output earlier recorded this level of growth at 3.9 per cent in March 2025.
The factory output, measured in terms of the Index of Industrial Production ( IIP), had expanded by five per cent in July 2024.
The National Statistics Office (NSO) kept industrial production growth unchanged at 1.5 in June as against the provisional estimates released last month.
The latest NSO data showed that the manufacturing sector's 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.
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 IIP growth accelerated appreciably to a four-month high of 3.5% in July 2025 from 1.5% in June 2025, led by a broad-based improvement across all the sectors. Nevertheless, the performance of the mining and electricity sectors remained weak, even as the effect of heavy rains eased somewhat in that month, weighing on the overall IIP growth. Encouragingly, growth in manufacturing output accelerated to a 6-month high of 5.4% in July 2025 from 3.7% in June 2025, aided by construction inputs and consumer durables," said Aditi Nayar, Chief Economist, ICRA Ltd on IIP.
On the use-based side, all the six categories recorded an improvement in their growth performance in July 2025 vis-à-vis June 2025, she said. "The output for infrastructure/construction goods surged to a 21-month high of 11.9%, aided by robust growth in construction inputs such as cement and steel, suggesting that construction activity is likely to have remained strong in the month. Besides, the growth in consumer durables output rose to a 7-month high of 7.7% in the month, likely aided by pre-festive stocking, in line with the pickup in growth of GST e-way bills."
Looking ahead, the improved transmission of monetary easing and the recent announcement of forthcoming GST rationalisation may help to shore up urban consumption sentiments, although discretionary consumption may see some deferment until lower tax rates are brought in, she added.
The growth comes due to good performance of manufacturing sector, according to official data released on Thursday.
The country's industrial output earlier recorded this level of growth at 3.9 per cent in March 2025.
The factory output, measured in terms of the Index of Industrial Production ( IIP), had expanded by five per cent in July 2024.
The National Statistics Office (NSO) kept industrial production growth unchanged at 1.5 in June as against the provisional estimates released last month.
The latest NSO data showed that the manufacturing sector's 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.
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 IIP growth accelerated appreciably to a four-month high of 3.5% in July 2025 from 1.5% in June 2025, led by a broad-based improvement across all the sectors. Nevertheless, the performance of the mining and electricity sectors remained weak, even as the effect of heavy rains eased somewhat in that month, weighing on the overall IIP growth. Encouragingly, growth in manufacturing output accelerated to a 6-month high of 5.4% in July 2025 from 3.7% in June 2025, aided by construction inputs and consumer durables," said Aditi Nayar, Chief Economist, ICRA Ltd on IIP.
On the use-based side, all the six categories recorded an improvement in their growth performance in July 2025 vis-à-vis June 2025, she said. "The output for infrastructure/construction goods surged to a 21-month high of 11.9%, aided by robust growth in construction inputs such as cement and steel, suggesting that construction activity is likely to have remained strong in the month. Besides, the growth in consumer durables output rose to a 7-month high of 7.7% in the month, likely aided by pre-festive stocking, in line with the pickup in growth of GST e-way bills."
Looking ahead, the improved transmission of monetary easing and the recent announcement of forthcoming GST rationalisation may help to shore up urban consumption sentiments, although discretionary consumption may see some deferment until lower tax rates are brought in, she added.
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