New Delhi, Oct 28 (PTI) 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.

During the April-September period (H1) of FY26, the country's industrial production grew by 3 per cent compared to 4.1 per cent in the first half of 2024-25.

Within the manufacturing sector, 13 of 23 industry groups recorded positive growth in September 2025 compared with September 2024.

As per the use-based classification, the capital goods segment grew 4.7 per cent in September 2025, up from 3.5 per cent in the year-ago period.

Consumer durables (or white goods production) growth accelerated to 10.2 per cent during the reporting month from 6.3 per cent growth in September 2024.

In September 2025, consumer non-durables output declined by 2.9 per cent, as against a growth of 2.2 per cent a year ago.

Infrastructure/construction goods reported a growth of 10.5 per cent in September 2025, up from a 3.5 per cent expansion in the year-ago period.

The data also showed that the output of primary goods increased by 1.4 per cent in September 2025 against 1.8 per cent growth a year earlier.

The expansion in the intermediate goods segment was 5.3 per cent in the month under review against 4.3 per cent growth a year ago. PTI KKS MR

Industrial output grew about 4% in September due to manufacturing gains, GST rationalisation and festive demand. Industrial production grew about 4 per cent in September 2025 driven by manufacturing, with the National Statistics Office revising August figures slightly upward; the summary links the manufacturing boost to GST rationalisation and festive demand. Sectoral detail shows capital goods, infrastructure/construction goods and consumer durables expanding, consumer non durables contracting, and 13 of 23 manufacturing groups reporting positive growth, while H1 FY26 industrial growth moderated relative to the prior year.