India’s industrial output slowed modestly in September 2025, with the Index of Industrial Production (IIP) rising 4% year-on-year, compared with 4.1% in August, according to official data released by the Ministry of Statistics and Programme Implementation (MOSPI).

The September figure reflects a stable but slightly decelerating growth trend across key industrial sectors, as the manufacturing segment-maintained momentum while mining remained subdued.

Manufacturing Continues to Support Industrial Activity

The manufacturing sector, which accounts for nearly three-fourths of India’s industrial output, recorded a 4.8% year-on-year growth in September 2025, higher than the 4% expansion a year earlier. The manufacturing index increased to 154.3, up from 147.2 in September 2024.
Growth in manufacturing was driven by consistent demand in consumer goods and moderate improvement in capital goods production. Stable inventory restocking ahead of the festive season and gradual recovery in domestic consumption helped sustain output levels across several sub-industries.

Mining Records Marginal Decline in Output

Mining activity remained weak during the month, showing a 0.4% contraction compared with the same period last year. The index for mining slipped slightly to 111.2, from 111.7 in September 2024.
The marginal decline was attributed to operational disruptions and lower output from select mineral-producing regions. Uneven monsoon patterns and logistical challenges affected extraction activities, contributing to the negative reading in the sector.

Electricity Generation Shows Moderate Expansion

The electricity sector reported a 3.1% rise in output in September 2025, reflecting moderate growth in energy demand. The index increased to 213.3, from 206.9 in the corresponding month of the previous year.
Higher generation from thermal and renewable power sources supported this increase, though the pace of expansion remained moderate compared with mid-year levels when electricity output had shown stronger seasonal gains.

Sequential Trends Indicate Gradual Deceleration
Industrial output grew 3% in April–September FY26, slower than 4.1% a year ago, signaling a mild moderation in momentum. Manufacturing remains the key driver, offsetting weakness in mining and modest electricity growth. The outlook points to steady but measured expansion, with sustained demand and production continuity supporting activity, though momentum in capital goods and infrastructure will be crucial in H2 FY26.

Conclusion

Overall, India’s industrial output in September 2025 reflected steady but moderating growth, supported by resilient manufacturing amid subdued mining and moderate electricity expansion. While domestic demand and festive restocking provided near-term support, sustaining momentum in capital goods, infrastructure, and energy production will be vital for stronger industrial recovery in the coming months.