Index of Industrial Production
Why in news:
India’s Index of Industrial Production (IIP) growth slowed to 4% in August 2025, compared to 4.3% in July (six-month high).
Key Reasons:
- Manufacturing slowdown:
- Manufacturing growth fell to 3.8% in August from 6% in July.
- Positive turnaround in primary goods:
- The primary goods sector grew at a seven-month high of 5.2%.
- Drag from consumer sectors:
- Consumer non-durables saw contraction of 6.3%, the worst in nine months.
UPSC CSE Relevance:
This article is relevant for GS Paper III (Indian Economy) as it highlights trends in industrial growth and sectoral performance under the Index of Industrial Production (IIP). It aids in understanding economic slowdowns, structural issues in key sectors like mining and electricity, and their implications on policy and planning.
UPSC CSE PYQ 2015:
In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?
A. Steel production
B. Coal production
C. Electricity generation
D. Fertilizer production