India’s IIP Growth Eases to 4% in August 2025
Why in the news
The Index of Industrial Production (IIP) rose 4% in August 2025, just under July’s revised 4.3% (earlier 3.5%). Manufacturing dragged; mining and power improved.
Sector data
| Category | July | August |
|---|---|---|
| Manufacturing | 5.38% | 3.8% (purchases deferred before GST cuts) |
| Mining | Contracted | 6% |
| Electricity | Negative in May-June | 4.15% |
| Capital goods | 6.8% | 4.4% |
| Infrastructure goods | 13.7% | 10.6% |
| Consumer durables | 7.2% | 3.5% |
| Consumer non-durables | Negative | -6.3% |
Policy and market factors
- GST Council cuts on autos, textiles, packaged foods, insurance and restaurants (the GST savings festival) should lift demand.
- Rural demand: good monsoon, kharif sowing, benign inflation; urban: cheaper loans, tax relief.
- Risks: weak global demand, 50% US tariffs, excess rain.
Exam angle
- Strongest segment: infrastructure goods at 10.6%.