IIP Data: India's industrial output grows by 4% in September, driven by manufacturing sector

Industrial production in India grew by 4% year-on-year (YoY) during September on the back of good performance of the manufacturing sector, according to official government data released on Tuesday, October 28.

The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 3.2% in September 2024.

The National Statistics Office (NSO) updated the industrial production growth to 4.1% for August 2025 from the provisional estimate of 4% released last month.

Latest NSO data shows that the manufacturing sector's output expanded by 4.8% in September 2025, as compared to 4% in the year-ago period. Manufacturing activity grew by 3.8% in August.

Growth in September was due to the festive season boost and GST overhaul by the government, supporting demand for products and increasing the purchasing power of consumers, as per reports.

Meanwhile, mining production declined by 0.4% against a growth of 0.2% recorded a year ago, and power production rose by 3.1% in September after expanding by 0.5% a year ago.

Electricity production increased by 3.1% in September against 0.5% a year ago and 4.1% in August.

In the first half of the current fiscal year (April-September, H1 FY26), the country's industrial production grew by 3% against 4.1% in the first half of 2024-25 (H1 FY25).

IIP: Use-Based

• Primary goods: Up 1.4% in September against 1.8% in FY25 and 5.4% in August.

• Capital goods: Grew by 4.7% in September versus a growth of 3.5% last year and 4.5% in August.

• Intermediate goods: Rose by 5.3% in September compared with 4.3% a year ago and 5.2% in August.

• Infrastructure/construction goods: Expanded by 10.5% in September, sharply higher than 3.5% a year earlier and 10.4% in August.

• Consumer durables: Increased by 10.2% in September, up from 6.3% in the same month last year and 3.5% in August.

• Consumer non-durables: Contracted by 2.9% in September, versus a growth of 2.2% a year ago and a decline of 6.4% in August.