India’s industrial growth slows to … amid US tariffs on Russian oil imports

India’s industrial production fell from 4.3% to 4% in August 2025 and was influenced by the weak consumer demand and tariffs for US Russian oil imports. While production, capital goods and consumer plants dragged growth, mining and infrastructure showed flexibility.

Indian industrial growth. (Representative image)

At a time when US President Donald Trump applied a 25 percent punishing tariff to India to buy Russian oil on 25 percent basic tariffs, the industrial production in the country has slowed down. Industrial activity in India slowed down to 4% in July 2025 from 4.3% 6 -month growth in July. The main reason for this was that in addition to the demands of consumer strengths and the sectors of unjudiced sectors, there is a slower growth in manufacturing, capital goods and infrastructure sectors.

Key Important Points

The IIP growth rate for August 2025 is 3.5 percent in July 2025 (fast forecast) 4.0 percent.

The growth rates of three sectors, mining, manufacturing and electricity for August 2025 are 6.0 percent, 3.8 percent and 4.1 percent, respectively.

IPP’s rapid forecasts stand in 151.7 against 145.8 in August 2024. Industrial production indices for mining, production and electricity sectors for August 2025 stand in 113.5, 151.6 and 221.1, respectively.

In the production sector, 10 of the 23 industrial groups with NIC 2 digits achieved a positive growth in August 2025 in August 2025. The first three positive contributions for August 2025-Production of Basic Metals ”,“ Production of Coca and Refined Petroleum Products ”(5.4%) (5.4%) and“ Motor Manufacturers and 9.8.

“MS SLABS”, “HR coils and light steel layers” and “steel pipes and tubes” have contributed significantly to growth in the Industrial Group.

In the industrial group, “Production of Coke and Refined Petroleum Products”, “Diesel”, “Gasoline/ Motor Spirit” and “Liquidized Petroleum Gas (LPG)” product groups have made significant contributions to growth.

Production of Motor Vehicles, Trailer and Semi Tekmers ”product groups in the industry group has contributed significantly to growth growth.

According to the usage base classification, the indices stop 148.9 for primary goods, 112.1 for capital goods, 170.4 for intermediate goods and 200.8 for infrastructure/ construction goods for August 2025, consumer strengths and consumer estimated indices respectively at 134.4 and 132.8 respectively.

According to the use -based classification in August 2025 in August 2025, the corresponding growth rates of the IIP are 5.2 percent in primary goods, 4.4 percent in capital goods, 5.6 percent in middle goods, 10.6 percent in infrastructure/ construction goods, 3.5 percent in consumer resistance and 6.3 percent in non -consumer endless consumer. Based on use -based classification, the primary goods, infrastructure/ construction goods and intermediate goods, which made the first three positive contributions to IPP growth in August 2025, are.