India’s Index of Industrial Production: This news is going to give relief for the Indian economy facing the American tariff. In July, there has been a 3.5 percent increase in industrial production of the country. This is the highest increase in the last four months. The main reason for this surge was the better performance of the manufacturing sector.

On Thursday, the official data released by the National Statistics Office (NSO) stated that the Industrial Production Index (IIP) increased by 3.5 percent in July. This is the highest level after the 3.9 percent increase recorded in March this year. However, in July 2024, industrial production had increased at the rate of 5 percent, that is, this time the growth on an annual basis has been slightly slow.

Meanwhile, NSO has kept the growth rate of industrial production for June 2025 stable at 1.5 percent. This figure is the same as the temporary estimate released last month.

Why increased speed?

In July 2025, the growth rate of manufacturing sector was 5.4 percent, compared to 4.7 percent in the same month last year. However, the mining sector recorded a huge decline of 7.2 percent. A year ago, it increased by 3.8 percent in the same period. There was also a big decline in power generation. While power generation increased by 7.9 percent in July 2024, it was only 0.6 percent in July 2025.

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The country’s total industrial production increased by only 2.3 percent in the first four months (April-July) of FY 2025-26. Whereas in the same period last year, it was 5.4 percent. It is clear that at the beginning of the current financial year, the pace of industrial activities has been relatively slow.

Significantly, this increased news has come at a time when 50 percent US tariffs have been effective on India since August 27, one day ago. However, many efforts are being made by the government to deal with it. But, it is being said that due to this high tariff, business related to labor -oriented employment such as clothes, leather, footwear, gems and jewelery can be affected.

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India’s Industrial Production: Increase in industrial production due to weak performance of the country’s mining and power sectors was sluggish in June this year to a 10 -month low of 1.5 percent. In the official data released on Monday, it was informed that with the early monsoon, the activities of the mining and electricity area have been affected.

In the month of June last year, the Industrial Production Index (IIP) increased at a rate of 4.9 percent. The National Statistical Office has also revised to 1.9 percent of the May industrial production growth rate, while it was estimated to be 1.2 percent earlier.

Why slow speed?

Industrial production growth is the lowest after August 2024. At that time its growth was stable. According to NSO data, the production growth in manufacturing sector increased slightly to 3.9 percent in June, 2025, which was 3.5 percent in the same month a year ago. Mining production declined by 8.7 percent, while a year ago it recorded an increase of 10.3 percent.

Power generation has declined by 2.6 percent in June this year, while it increased by 8.6 percent during the same period a year ago. During the April-June period of FY 2025-26, industrial production increased by 2 percent, compared to 5.4 percent in the same period a year ago.

Market experts believe that energy and mining have declined due to the monsoon and affected the quarter data. Citing NSO’s data, he said that seasonal challenges have been on industrial production. Especially the sectors that depend on the weather.

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