India’s Industrial Output Grew 4% in September led by Factory output

India’s Industrial Output is one of the crucial metrics for determining the economic growth of the country, and in September 2025, the Index of Industrial Production (IIP), which measures the industrial output growth, surged by 4% on a Year-on-Year (YoY) basis, matching the last month’s quick estimates offered by the government officials. 

Manufacturing Led the Way 

Within IIP, three sectors are mainly considered, which are manufacturing, mining, and electricity generation. So, out of these three, mining and electricity grew moderately during September; however, a 4.8% growth in the Indian manufacturing sector led the way and pushed the entire IIP growth forward. 

Within the manufacturing sector, the electrical equipment grew the most, that is, by 28.7%. Then the basic metals manufacturing also grew significantly by 12.3% and the motor vehicles, trailers, and semi-trailers production also increased by 14.6% 

If you dig a little deeper, then most of the Industrial output came from products such as MS slabs, transformers, electric heaters, and auto components. 

Mining and Electricity Generation Declined 

While the manufacturing sector grew in the previous month, the mining activity dropped by 0.4% compared to a whopping 6.6% growth recorded in August. Similarly, output only grew by 3.1% while during August, it grew 4.1%. 

Use-Based Classification of Industrial Output 

Now, if you see the use of the industrial products which are produced during September, then – 

• Infrastructure goods output increased by 10.5% compared to 10.4% Month-on-month (MoM)
• Consumer Durables output grew by 10.2% compared to 3.5% MoM
• Output of consumer non-durables, on the contrary, declined by 2.9% compared to a massive decline of 6.4% last month. Though it has improved from August, but still in a declining phase. 
• The output of primary goods also increased by 1.4% but dropped from last month’s 5.4% increase. 
• Capital goods output surged by 4.7%, bit higher than August’s 4.5%. 

Wrapping up 

India’s growth story seems to remain intact, with the manufacturing sector leading the way. The other core sectors are also performing well, but there is a period of sluggishness; one sector compensates for another to keep up India’s overall industrial Growth. Now it will be interesting to see what holds for the month of October 2025. 

Source: CNBCTV18

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