India’s Industrial Production Grows 4% In August 2025 Vs 3.5% A Month Ago: IIP Data | Economy News

The growth rates of the three sectors, mining, manufacturing and electricity for August 2025 are 6 per cent, 3.8 per cent and 4.1 per cent, respectively.

India’s industrial output, based on the Index of Industrial Production (IIP), grew 4 per cent in August 2025, compared with 3.5% a month ago, according to the latest IIP data released on September 29. The higher growth was recorded on the back of a rise in production in mining, manufacturing, and electricity.

“With the mining sector growth at 6%, the All India Index of Industrial Production (IIP) recorded a 4% year-on-year growth in August 2025,” the Ministry of Statistics & Programme Implementation said in a statement.

The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of August 2025 are 6.0 per cent, 3.8 per cent and 4.1 per cent, respectively, it added.

Meanwhile, amid India’s gradually improving fiscal indicators, Moody’s Ratings on Monday affirmed India’s long-term local- and foreign-currency issuer ratings, as well as the local-currency senior unsecured rating, at Baa3.

“The stable outlook incorporates India’s gradually improving fiscal metrics and resilient growth prospects compared with peers. However, fiscal accommodation in the context of the uncertain global macroeconomic outlook, including revenue-eroding measures, could impede progress towards debt reduction and exacerbate already weak debt affordability,” Moody’s said in its statement.

The rating agency maintained its outlook for India as stable. “The rating affirmation and stable outlook reflect our view that India’s prevailing credit strengths, including its large, fast-growing economy, sound external position and stable domestic financing base for ongoing fiscal deficits will be sustained,” the agency noted.

Moody’s added that these strengths help India remain resilient to adverse external headwinds, especially as high US (Aa1 stable) tariffs and other international policy measures could hinder India’s ability to attract manufacturing investment.

While highlighting India’s credit positives, Moody’s pointed out long-standing fiscal challenges that persist. It said that strong GDP growth and gradual fiscal consolidation will drive only a slow decline in the government’s high debt burden, insufficient to materially improve weak debt affordability — particularly as recent fiscal measures aimed at boosting private consumption erode the government’s revenue base.