India's Industrial Surge: A Steady Climb Fueled by Manufacturing and Festive Demand

India's industrial production sustained a 4% growth rate in September this year, propelled by robust manufacturing performance, according to data released by the National Statistics Office (NSO) on Tuesday. The manufacturing sector, buoyed by GST rationalisation and festive demand, played a pivotal role in this steady economic surge.

Data from the NSO revealed that factory output, as measured by the Index of Industrial Production (IIP), had risen from a 3.2% expansion seen in the previous year. The revised growth rate for August 2025 stood at 4.1%, slightly up from the previously estimated 4%.

Aditi Nayar, Chief Economist at ICRA Ltd, highlighted that the revamped GST rates, pent-up demand, and early festive season onset appeared to have notably propelled demand during September-October 2025, potentially ensuring a continuation of this growth in manufacturing output through October.