Industrial output: India’s factory growth steady at 4% in September; infra, manufacturing shine amid weaker mining output

India’s industrial production growth remained steady at 4 per cent in September 2025, supported by a stronger manufacturing performance, according to data released by the National Statistics Office (NSO) on Tuesday. The factory output, measured by the Index of Industrial Production (IIP), was higher than the 3.2 per cent growth recorded in September 2024.The NSO also revised August 2025’s industrial growth figure upward to 4.1 per cent from the earlier provisional estimate of 4 per cent. During the first half of FY26 (April–September), overall industrial output grew 3 per cent, lower than 4.1 per cent recorded during the same period in FY25, according to official data.Within sectors, manufacturing output expanded by 4.8 per cent in September 2025 compared to 4 per cent in the year-ago month. Mining production, however, contracted by 0.4 per cent, against a modest 0.2 per cent growth a year earlier. Power generation increased by 3.1 per cent, improving from 0.5 per cent in the corresponding period last year, reported news agency PTI.Commenting on the trend, Aditi Nayar, chief economist at ICRA, was quoted by ET as saying, “Buoyed by stocking ahead of GST rationalisation-fuelled demand during the festive season, the IIP growth for September 2025 remained steady at 4%, shrugging off the slowdown seen in the core sector growth”.As per the use-based classification, capital goods output grew 4.7 per cent, up from 3.5 per cent in September 2024. Consumer durables production surged 10.2 per cent, compared to 6.3 per cent a year ago, while consumer non-durables fell 2.9 per cent, reversing a 2.2 per cent growth in September 2024. Infrastructure and construction goods registered a robust 10.5 per cent growth, up from 3.5 per cent in the same month last year.According to commerce ministry data, growth across India’s eight core industries slowed sharply to 3 per cent in September from 6.5 per cent in August, mainly due to contractions in refinery products, natural gas, and crude oil. Steel production surged 14.1 per cent and cement output rose 5.3 per cent, reflecting sustained infrastructure momentum.Nayar added that the combination of GST rate rationalisation, pent-up demand, and early festive onset likely boosted manufacturing activity. “While the GST rationalisation may support demand for smaller-ticket items post the festive season, the sustenance of buoyancy in demand for big-ticket items remains to be seen,” she said.