India’s industrial output rose 4.0% year-on-year in September, surpassing Reuters’ forecast of 3.0%. Manufacturing led the charge with a 4.8% uptick, while April–September cumulative growth stood at 3.0%. The data signals resilience amid seasonal disruptions and policy transitions.
India’s industrial sector showed unexpected strength in September 2025, with the Index of Industrial Production (IIP) expanding by 4.0% year-on-year, outpacing Reuters’ forecast of 3.0%. The surge was primarily driven by robust manufacturing activity, despite headwinds from heavy monsoon rains and GST rate adjustments.
Notable Updates:
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September Manufacturing Output: Rose 4.8% YoY, up from 3.8% in August, indicating a rebound in factory activity.
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Overall Industrial Output: Registered 4.0% YoY growth, marking the slowest pace in three months but still above expectations.
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April–September Performance: Cumulative industrial output grew 3.0% YoY, reflecting steady momentum in the
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first half of FY26.
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Sectoral Drivers: Gains were led by infrastructure and capital goods, while core sector growth moderated to 3%
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Policy Context: Temporary disruptions from GST rationalization and weather-related slowdowns were offset by resilient domestic demand.
The data underscores India’s industrial resilience and sets a cautiously optimistic tone for Q4, with manufacturing emerging as a key growth pillar.
Sources: Ministry of Statistics and Programme Implementation (MoSPI), Reuters, NDTV Profit, Moneycontrol.