MoSPI IIP for August 2025: Industrial Output Expands 5.7% Driven by Manufacturing and Capital Goods
SDG 8: Decent Work & Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Statistics and Programme Implementation | RBI
On 29 September 2025, the Ministry of Statistics and Programme Implementation (MoSPI) released the Quick Estimates of Index of Industrial Production (IIP) for August 2025, reporting output growth of 5.7% year-on-year (base: 2011-12=100). Industrial production reached an index level of 151.6 compared to 143.4 in August 2024.
By sector, manufacturing rose 5.9%, mining grew 5.1%, and electricity output increased 4.4%. Within use-based categories, capital goods surged 8.3%, infrastructure/construction goods 8.1%, and primary goods 5.4%. Consumer durables grew 3.9%, while consumer non-durables inched up only 1.2%, reflecting subdued household demand.
These figures confirm continued resilience in manufacturing and investment-linked sectors, aligning with India’s Make in India and Atmanirbhar Bharat goals. The near-identical growth rates across July and August suggest stability in industrial momentum, particularly in investment-linked sectors. However, the weak growth in non-durables signals fragile consumption recovery, raising questions for demand-side policies. For the RBI, IIP trends provide critical context alongside inflation data in monetary policy decisions.
What is the difference between IIP and ICI? → ICI is an early signal (released around the end of each month for the previous month). And IIP is the comprehensive measure (released by MoSPI ~6 weeks later), with ICI data feeding into it.
What is IIP→ The Index of Industrial Production (IIP) is a broad monthly indicator that tracks volume changes across mining, manufacturing, and electricity (covering 399 items, base year 2011–12). It is released by MoSPI’s National Statistical Office (NSO) and is the main short-term gauge of overall industrial performance.
What is ICI → The Index of Eight Core Industries (ICI) is a narrower, high-frequency index compiled by the Ministry of Commerce & Industry. It tracks output from 8 key sectors: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. These account for 40.27% weight within the IIP.
Follow the full report here:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2172702 https://mospi.gov.in/sites/default/files/press_release/IIP_PR_29sep25.pdf