India's industrial output rises 4% in September, driven by manufacturing and infrastructure growth

India’s industrial production registered a 4 per cent year-on-year growth in September 2025, supported by a firm performance in manufacturing and infrastructure-linked sectors, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday, October 28.

The growth rate, measured by the Index of Industrial Production (IIP), maintained the same pace as August’s 4 per cent expansion. Industrial activity had improved steadily through the previous months - rising from 1.5 per cent in June to 3.5 per cent in July, signalling a gradual recovery in factory output and investment activity.

Manufacturing remains key driver of growth

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The manufacturing sector, which accounts for the bulk of India’s industrial base, recorded a 4.8 per cent increase in September compared with 3.8 per cent in August. Out of 23 industry groups, 13 registered positive growth, reflecting broad-based momentum in production.

The top contributors were basic metals (12.3 per cent), electrical equipment (28.7 per cent) and motor vehicles, trailers and semi-trailers (14.6 per cent). The Ministry said these segments continued to support job creation and domestic investment.

Consumer durables and infrastructure lift output

Rising household incomes and festive demand boosted the production of consumer durables, which grew by 10.2 per cent in September. Products such as refrigerators, televisions and air conditioners saw higher sales as consumers upgraded household goods amid improved sentiment.

The infrastructure and construction goods category also expanded by 10.2 per cent year-on-year, marking the second consecutive month of double-digit growth. This increase is attributed to the government’s ongoing capital expenditure in highways, railways and port development, which has supported industrial activity and employment across related sectors.

Investment-linked sectors show resilience

Output of capital goods, often seen as an indicator of future investment, rose by 4.7 per cent in September. Economists said this reflects continued spending on machinery and equipment, which could translate into stronger private sector investment in the coming quarters.

However, growth was uneven across sectors. While electricity generation rose 3.1 per cent, the mining sector contracted slightly by 0.4 per cent, suggesting that supply-side constraints remain in parts of the industrial chain.