new delhi, Aug 28
The Index of Industrial Production (IIP) grew 3.5% in July compared to 1.5% in June, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).
In July, the growth rates of Mining, Manufacturing, and Electricity stood at (-) 7.2%, 5.4% and 0.6%, respectively.
Steel and cement industries had posted robust gains. Steel output jumped 12.8%, its fastest pace in 21 months, while cement grew 11.7%, a four-month high.
Consumer durables output rose to a seven-month high of 7.7% in July, while non-durables production rose to an eight-month high of 0.5%.
Aditi Nayar, Chief Economist at ICRA, said, “The IIP growth was driven by a broad-based improvement across 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.”
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.
“Interestingly, capital goods output has risen by a healthy 8.6% during April-July 2025, supported by factors such as machinery exports and government capex.
The latter is likely to report a YoY slowdown in the months ahead, on last year’s back-ended base,” Aditi said.
Moreover, the outlook for private capex activity remains lacklustre, owing to the heightened global uncertainty, particularly around the tariff-related developments and their impact on India’s exports, she added.
According to MoSPI data, the primary goods output contracted by 1.7% in July versus a fall of 2.7% in the preceding month.
Capital goods output grew by 5% versus 3% in June, and intermediate goods grew 5.8% versus a growth of 5.5% in the preceding month.
Infrastructure goods grew 7.2% versus 6.7% last month, while consumer durables grew 2.9% versus a fall of 0.9% in the previous month.
Further, the consumer non-durables output fell 0.4% versus a fall of 1%.
