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.

FY

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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