India's industrial growth reached 4% in August 2025, marking the second consecutive month of acceleration, according to the Index of Industrial Production (IIP) data released by the Ministry of Statistics and Programme Implementation. This growth was primarily driven by a strong performance in the mining sector, which saw a year-on-year increase of 6%, recovering from a contraction in July due to heavy monsoon rains.

Manufacturing also contributed positively, growing by 3.8%. Out of 23 industry groups, 10 reported positive growth, with notable increases in the basic metals sector at 12.2%, and motor vehicles, trailers, and semi-trailers at 9.8%. The electricity generation sector improved as well, with a growth of 4.1%, rebounding from a near standstill of 0.6% in July.

Infrastructure and construction goods experienced significant growth of 10.6%, reflecting substantial public investment in projects related to highways, railways, and ports. The primary goods sector grew by 5.2%, while capital goods saw a rise of 4.4%, indicating ongoing investment activity in the economy.

However, consumer durables only increased by 3.5%, and the consumer non-durables sector faced a contraction of 6.3%, suggesting a slowdown in demand for fast-moving consumer goods. The IIP index stood at 151.7 in August 2025, compared to 145.8 in August 2024. The next IIP data release is scheduled for October 28, 2025, which will provide further insights into the industrial performance for September 2025.