India’s industrial production grew by 3.5% in July 2025, reaching a four-month high, according to data released by the National Statistical Office (NSO) on 28th August 2025. The improvement came on the back of stronger manufacturing activity, even as mining and power generation dragged overall performance.
Recovery Marked Clear Improvement
Factory output, measured by the Index of Industrial Production (IIP), recorded a 5% rise in July 2024. Manufacturing, which accounts for the bulk of industrial activity, grew by 5.4% compared to 4.7% in the same month last year. This recovery marked a clear improvement over June’s modest 1.5% growth, which the NSO left unchanged in its latest revision.
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Mining and Power Growth Slowdown in July
The mining sector registered a sharp contraction of 7.2% in July 2025, in contrast to a 3.8% expansion in July 2024. Power generation also showed a significant slowdown, rising just 0.6% compared with 7.9% in the corresponding month last year. These weak segments capped the momentum generated by the manufacturing sector.
For the first four months of the financial year 2025–26 (April–July), industrial output has grown by 2.3%, sharply lower than the 5.4% recorded in the same period of 2024–25. Economists said the uneven sectoral performance suggests that while manufacturing is showing resilience, persistent weakness in mining and energy may weigh on sustained recovery in the coming months.
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