SDG 9: Industry, Innovation and Infrastructure | SDG 8: Decent Work and Economic Growth
Institutions: Ministry of Statistics & Programme Implementation
India’s Index of Industrial Production (IIP) recorded a year-on-year growth rate of 4.0% in September 2025, matching the quick estimate from the previous month. This performance was primarily driven by the Manufacturing sector, which posted a robust 4.8% growth. Within Manufacturing, “Manufacture of electrical equipment” surged by 28.7%, followed by the “Manufacture of basic metals” at 12.3%. In contrast, the Mining sector contracted by (-)0.4%.
A closer look at the use-based classification shows that growth is highly skewed towards investment and aspirational goods. The Infrastructure/Construction Goods segment was the top performer, growing by 10.5%, while Consumer Durables also saw strong growth at 10.2%. However, this optimism is tempered by the Consumer Non-durables segment, which contracted by (-)2.9% over the period.
Significant numbers at a glance:
Sectoral Growth (Sep 2025):
Manufacturing: 4.8%.
Electricity: 3.1%.
Mining: (-)0.4% (negative growth).
Top Manufacturing Contributors (2-digit level):
“Manufacture of basic metals” (12.3%).
“Manufacture of electrical equipment” (28.7%).
“Manufacture of motor vehicles, trailers and semi-trailers” (14.6%).
Use-Based Classification Growth (Sep 2025):
Infrastructure/ Construction Goods: 10.5%.
Consumer Durables: 10.2%.
Intermediate Goods: 5.3%.
Capital Goods: 4.7%.
Consumer Non-durables: (-)2.9% (negative growth).
The acceleration in infrastructure and construction goods reflects continued strength in public and private investment. However, the contraction in consumer non-durables signals potential underlying weaknesses in mass-market consumption demand, posing a challenge to inclusive economic recovery.
What is the Index of Industrial Production (IIP)?→ The IIP is a quick estimate statistical indicator that measures the changes in the volume of production of a basket of industrial products over a fixed reference period. Released monthly, the index provides critical short-term insights into the state of the manufacturing, mining, and electricity sectors, making it a key metric for assessing India’s industrial performance and economic health.
What is the Use-Based Index?→ It is a key statistical tool used by the Ministry of Statistics & Programme Implementation (MOSPI) to analyze the Index of Industrial Production (IIP). It classifies all industrial goods not by the industry that makes them, but by what the final products are used for in the economy (e.g., consumption, investment, or infrastructure). This classification is crucial because it provides deeper insight into the drivers of economic growth by showing whether current industrial momentum stems from consumer demand (through Consumer Durables and Non-durables) or future investment (through Capital and Infrastructure Goods).
Follow the full update here:
QUICK ESTIMATE OF INDEX OF INDUSTRIAL PRODUCTION AND USE-BASED INDEX FOR THE MONTH OF SEPTEMBER 2025