New Delhi: India's Index of Industrial Production (IIP) increased by 3.5 percent in July 2025, up from 1.5 percent in June 2025, according to official data. According to data from the Ministry of Statistics and Program Implementation.
Sector-by-sector, manufacturing increased by 5.4%, electricity by 0.6%, while mining decreased by 7.2%.
The overall IIP index for July 2025 was 155.0, up from 149.8 in July 2024. Fourteen of the 23 industrial categories in manufacturing saw gains. Positive development, led by basic metals (12.7%), electrical equipment (15.9%), and other nonmetallic mineral products (9.5%).
Key drivers were supplies such as MS slabs, electric heaters, transformers, and cement.
According to use-based categorization, the indices were: Primary Goods (147.6), Capital Goods (119.7), Intermediate Goods (174.1), Infrastructure/Construction Goods (201.0), Consumer Durables (136.3), and Consumer NonDurables (147.8).
When compared to July 2024, the greatest increase occurred in Infrastructure/Construction Goods (11.9%), followed by Intermediate Goods (5.8%) and Consumer Durables (7.7%).
India's Index of Industrial Production increased by 1.5 percent year on year in June 2025.
According to the data, government-led infrastructure drive: Infrastructure and construction had the highest IIP growth (11.9%). In July, the most used-based sectors saw an increase in the rate of unemployment (July versus 6.7% in June).
Deshpande remarked that this indicates frontloading of the central and state governments' capital investment, largely on infrastructure.
She stated that the next months may see a drop in these shipments, hampered by higher US tariffs and sluggish growth among trade partners. However, an increase in domestic consumption, particularly one driven by robust rural demand, may help to mitigate this.
In the absence of a trade agreement between India and the United States, certain industries will have to prepare for a greater impact if US tariffs remain. At these rates, she continued.
