Index of Industrial Production (IIP)

Why in news?

Recently, the Ministry of Statistics and Programme Implementation has released the Index of Industrial Production (IIP) for August 2025.

• IIP – It is a measure of the rate of growth in the economy’s various industry groups over a given period.
• Aim – To measure the short-term changes in industrial output.
• Published since – 1950.
• Compiled & Published – Monthly by Central Statistical Organisation (CSO).
• Nodal Ministry - Ministry of Statistics and Program Implementation (MoSPI).
• Current base year – 2011-12.
• 3 Sectoral Category – Manufacturing , Mining, Electricity.
• Findings –

• IIP growth rate – For August 2025 is 4.0 % which was 3.5 % in July 2025.
• Growth rates of 3 sectors – Mining, Manufacturing and Electricity for August 2025 are 6.0 %, 3.8 % and 4.1 % respectively.
• Mining & Quarrying – This was the strongest performer, with production growing by 6.0% year-on-year, bouncing back from a contraction in August 2024.
• Manufacturing – The sector grew by 3.8% year-on-year, a slowdown from the 6.0% growth registered in July 2025.
• Significant contributors to manufacturing growth - "Manufacture of basic metals" (12.2%) and "Manufacture of motor vehicles, trailers and semi-trailers" (9.8%).
• Electricity – Power generation increased by 4.1% year-on-year, an improvement from its performance in August 2024.
• Infrastructure/Construction Goods – This category saw the highest growth, remained in double digits at 10.6%, although this was slower than July 2025 of 13.7%.
• Primary Goods – The output of primary goods increased by 5.2%.
• Capital Goods – The segment recorded a growth of 4.4% slowed from 6.7% in July 2025.
• Intermediate Goods – Production expanded by 5.0%.
• Consumer Durables – Growth in this category slowed to 3.5% in August 2025, compared to 5.4% in August 2024.
• Consumer Non-durables – This segment saw a contraction, shrinking by 6.3% year-on-year, reflecting weak consumer demand

References

1. The Hindu | Index of Industrial Production (IIP)
2. PIB | Index of Industrial Production (IIP)