India’s industrial output growth remained steady at 4 percent in September 2025, supported primarily by a robust performance in manufacturing. According to official data released by the Ministry of Statistics and Programme Implementation, the factory output, measured through the Index of Industrial Production (IIP), saw an increase from 3.2 percent in September 2024 to 4 percent this year.
The manufacturing sector showed a remarkable growth of 4.8 percent, further indicating strength in core manufacturing activities, driven by the manufacturing of basic metals and electrical equipment, which saw growth rates of 12.3 percent and 28.7 percent, respectively.Despite positive manufacturing data, the overall industrial growth experienced minor fluctuations. The previous month’s revised figure was upwardly adjusted to 4.1 percent from an initial estimate of 4 percent. However, the mining sector recorded a contraction of 0.4 percent, contrasting with a marginal expansion of 0.2 percent in the same period last year.
Electricity generation, on the other hand, performed strongly, rising by 3.1 percent, thus contributing to the steady industrial growth. During the first half of FY26, the overall industrial output grew by 3 percent compared to 4.1 percent in the first half of FY25, reflecting some slowdown but still maintaining resilience amid global economic pressures.This steady growth in India’s industrial output underscores the resilience of the manufacturing sector, buoyed by GST rate adjustments and increased festive demand, as analysts suggest. While recent data offers a positive outlook for India’s economy, the uneven performance across sectors—particularly the decline in mining—indicates that continued efforts are necessary to sustain growth and address sectoral disparities. Overall, this growth pattern bodes well for India’s economic trajectory, demonstrating a balanced recovery that hinges on manufacturing strength and infrastructure development