New Delhi [India], August 28 (ANI): India's Index of Industrial Production (IIP) grew by 3.5 per cent in July 2025, up from 1.5 per cent in June 2025, according to the data released by Ministry of Statistics & Programme Implementation.

Sector-wise, manufacturing grew by 5.4 per cent, electricity by 0.6 per cent, while mining saw a decline of 7.2 per cent.

The overall IIP index for July 2025 stood at 155.0, compared to 149.8 in July 2024. Within manufacturing, 14 out of 23 industry groups showed positive growth, led by basic metals (12.7 per cent), electrical equipment (15.9 per cent), and other non-metallic mineral products (9.5 per cent).

Key drivers included items like MS slabs, electric heaters, transformers, and cement.

As per use-based classification, the indices were: Primary Goods (147.6), Capital Goods (119.7), Intermediate Goods (174.1), Infrastructure/Construction Goods (201.0), Consumer Durables (136.3), and Consumer Non-Durables (147.8).

Compared to July 2024, the highest growth was seen in Infrastructure/Construction Goods (11.9 per cent), followed by Intermediate Goods (5.8 per cent) and Consumer Durables (7.7 per cent).

India's Index of Industrial Production recorded a year-on-year growth of 1.5 per cent in June 2025.

Commenting on the data, Dipti Deshpande, Principal Economist, Crisil Ltd, said, 'Government-led infrastructure push: Infrastructure and construction recorded the strongest IIP growth (11.9 per cent in July vs 6.7 per cent in June) among major use-based sectors.'

Deshpande added that this reflects frontloading of the Centre and state government's capital expenditure, mainly on infrastructure.

She added, 'The coming months could see some softening of these exports, weighed by higher US tariffs and from slower growth with trade partners. But an improvement in domestic consumption, particularly led by stronger rural demand, could provide some offset.'

'In the absence of a trade deal between India and US, some sectors will have to brace for a bigger impact if US tariffs persist at these rates,' she further added. (ANI)