What Do Use-based IIP Trends Indicate About Growth in Infrastructure and Primary Goods?
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Synopsis
India's IIP data from August reveals a significant surge in infrastructure and primary goods, indicating a robust recovery in key sectors like mining and electricity. Industry experts suggest this momentum bodes well for future economic expansion.
Key Takeaways
- IIP grew by 4 percent in August, reaching a seven-month high.
- Mining sector rebounded with a growth of 6 percent.
- Electricity production surged by 4.1 percent.
- Manufacturing sector expanded by 3.8 percent.
- Consumer durables recovered with a growth of 5.2 percent.
- Infrastructure and capital goods rose by 10.6 percent.
New Delhi, Sep 29 (NationPress) The latest report on India’s index of industrial production (IIP) for August has revealed significant growth in infrastructure and primary goods, as experts noted on Monday. This growth underscores a consistent recovery within the mining, electricity, and capital-intensive industries.
Hemant Jain, the President of the PHD Chamber of Commerce and Industry (PHDCCI), stated that the IIP increased by 4 percent in August, reaching a seven-month peak, primarily fueled by a strong resurgence in the mining and electricity sectors.
The mining industry experienced a remarkable growth of 6 percent in August, a notable recovery from the -7.2 percent decline seen in July, he elaborated.
Electricity generation also saw substantial improvement, surging 4.1 percent in comparison to only 0.6 percent the previous month.
Meanwhile, the manufacturing sector expanded by 3.8 percent, with 10 out of 23 industry groups at the NIC 2-digit level reporting positive growth.
Among these, 10 out of 23 industry groups showcased positive growth in August compared to the same month last year.
The leading contributors included the “basic metals” sector, which reported a robust double-digit growth of 12.2 percent, and the “motor vehicles, trailers, and semi-trailers” segment, which achieved a healthy 9.8 percent growth.
“Notably, basic metals, electrical equipment, and other transport equipment industries exhibited double-digit growth,” Jain added.
Data based on usage indicates that consumer durables grew by 5.2 percent in August, bouncing back from negative growth in July, while infrastructure and capital goods surged by an impressive 10.6 percent.
These developments reflect a strong emphasis on investment-oriented and primary goods sectors, even as consumer demand appears to be somewhat subdued.
Dr. Ranjeet Mehta, Secretary General and CEO of PHDCCI, mentioned that the recent GST 2.0 reforms are projected to facilitate a balance between investment and demand restoration.
“This policy is anticipated to stimulate consumption while fostering sustainable growth,” he remarked.
Experts express that the robust momentum in infrastructure and primary goods lays a solid groundwork for India’s industrial growth, signaling hope for broader economic expansion in the months ahead.
Point of View
It's clear that the recent trends in India's industrial production signify a crucial turning point. With a focus on infrastructure and primary goods, we see a pathway to economic recovery that aligns with national interests and growth goals.
NationPress
29/09/2025
Frequently Asked Questions
What contributed to the growth in IIP for August?
The growth in IIP for August was primarily driven by strong recoveries in the mining and electricity sectors, along with positive performance in various manufacturing groups.
How did the mining sector perform in August?
The mining sector recorded a significant growth of 6 percent in August, rebounding from a negative 7.2 percent in July.
What sectors showed the most growth?
The basic metals sector led with a growth of 12.2 percent, followed by motor vehicles, trailers, and semi-trailers at 9.8 percent.
What is the outlook for India's industrial growth?
Experts are optimistic as the strong trends in infrastructure and primary goods suggest a solid foundation for broader economic expansion in the coming months.
What role do GST reforms play in this growth?
The recent GST 2.0 reforms are expected to balance investment and demand, stimulating consumption and promoting sustainable growth.
