The mining and quarrying sector grew 6% in August 2025, a 14-month high, snapping a four-month streak of contractions. File
| Photo Credit: The Hindu
Growth in industrial activity in India slowed to 4% in August 2025 from its 6-month high growth of 4.3% in July. Growth was dragged down by the consumer durables and non-durables sectors, as well as slower growth in manufacturing, capital goods, and infrastructure sectors, government data showed.
On the other hand, mining activity, the primary goods sector, and electricity output saw a positive turnaround.
Data on the Index of Industrial Production (IIP), released by the Ministry of Statistics and Programme Implementation on Monday (September 29, 2025), showed that growth in the index this August was considerably faster than the 0% growth seen in August last year.
“This data should be read with caution as it captures neither the tariff nor GST effect which have been in the news and affected sentiment in business,” Madan Sabnavis, Chief Economist at the Bank of Baroda said. “Tariffs were implemented from Aug 27th while GST benefits kicked in late September,” he added.
The mining and quarrying sector in particular saw a significant turnaround. It grew 6% in August 2025, a 14-month high, snapping a four-month streak of contractions.
The second sector to see a robust turnaround was the primary goods sector, which saw growth coming in at a seven-month high of 5.2%. The electricity sector grew at a five-month high of 4.1% in August 2025.
The manufacturing sector, however, slowed to 3.8% in August 2025, down from 6% in July. This was quicker than the 1.2% growth the sector saw in August last year.
Similarly, growth in the capital goods sector slowed in August 2025 to 4.4% from 6.7% in July 2025. This was, however, quicker than the 0% seen in August last year.
Growth in the infrastructure and construction goods sector remained in double digits, at 10.6%, although this was slower than the growth seen in July 2025 of 13.7%.
Consumer-focused sectors saw growth slowing. The growth in the consumer durables sector slowed to 3.5% in August 2025 from 7.3% in July and 5.4% in August last year. The consumer non-durables sector saw activity contracting 6.3%, the worst performance in eight months.
Published – September 29, 2025 05:28 pm IST
