Factory output growth stable at 4% in Sept
India’s industrial production in H1 grew by 3% compared to 4.1% in H1/FY25; Festive demand, GST rate cut support mfg sector
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New Delhi: India’s industrial production growth remained steady at 4 per cent in September this year due to the good performance of the manufacturing sector buoyed by GST rationalisation and festive demand, according to official data released on Tuesday. The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 3.2 per cent in September 2024. The National Statistics Office (NSO) revised the industrial production growth to 4.1 per cent for August 2025 from the provisional estimate of 4 per cent released last month.
Commenting on the IIP data, Aditi Nayar Chief Economist, ICRA Ltd said: “Overall, the combination of GST rate rejig, pent-up demand and the early festive onset appears to have boosted demand in September-October 2025, which is expected to augur well for the growth in manufacturing output in October 2025 as well.”
While the GST rationalisation may support demand for regular use/smaller ticket items post the festive season, the sustenance of the buoyancy in demand for big-ticket items remains to be seen, she added. The latest NSO data showed that the manufacturing sector’s output expanded by 4.8 per cent in September 2025 against 4 per cent in the year-ago month. Mining production contracted by 0.4 per cent against a growth of 0.2 per cent recorded a year ago. Power production rose by 3.1 per cent in September 2025 against 0.5 per cent expansion in the year-ago period.
