An Analysis of India's Industrial Growth in August 2025
UPSC Relevance
Prelims: Indian Economy (Economic Growth & Development, Industrial Sector, Index of Industrial Production - IIP, Core Industries, National Statistical Office - NSO).
Mains:
General Studies Paper 3 (Economy): Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
Key Highlights from the News
India's industrial activity growth slowed to 4% in August 2025, down from 4.3% in July.
These figures are released via the Index of Industrial Production (IIP).
The main reasons for this slowdown are a decrease in demand for consumer durables and non-durables and a slowdown in the manufacturing sector.
A 6.3% decline in the consumer non-durables sector indicates decreasing demand in rural areas.
Meanwhile, sectors like mining, electricity, and primary goods performed well.
Experts say that the full impact of recent US tariffs and GST benefits is not yet reflected in these figures.
The Ministry of Statistics and Programme Implementation (MoSPI) releases IIP data monthly.
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