Growth in India’s industrial production rose to a 4-month high of 3.5% YoY in Jul-25 from 1.5% in Jun-25.
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Growth in industrial production was led by Manufacturing, Infrastructure & construction goods, and Consumer durables. In contrast, Mining activity and production of Primary goods remained in a contraction zone. While consumption-oriented industrial production remains subdued, the recent loss in IIP momentum can also be traced to the early and intense onset of the monsoon season. Going forward, the reshaping of global trade relations will influence the magnitude as well as the nature of India’s industrial production. While global developments present a somber outlook for the near term, there’s an emergence of a silver lining with relief on income tax and GST rate simplification and reduction, buoying domestic consumption. The lagged impact of the ongoing monetary and credit easing, and a seasonal kicker from surplus rainfall, should mitigate some of the external risks.