Archive · 24 Sep 2025
India's Manufacturing Surges in August, Reaching 17-Year High
India's factories had a very busy August, producing more goods than they have in 17 years!
This was because people were buying a lot, and the government was spending money.
Also, companies exported more goods to the US before new taxes started.
Industries like steel and coal did really well.
Experts think this trend might continue, but could slow down if private businesses don't invest more or if US tariffs impact exports.
India's manufacturing activity expanded at its fastest pace in over 17 years in August.
Core infrastructure industries grew at the fastest rate in 13 months.
Strong sales and output were noted in intermediate goods, capital, and consumer goods.
US tariffs on Indian exports prompted increased shipments.
Public investment and favorable base effects drove growth.
- Who
- India
- What
- Manufacturing activity and core infrastructure output increased significantly
- When
- August
- Where
- India
- Why
- Driven by strong sales, public investment, and pre-emptive exports due to US tariffs.
Positive Factors
Potential Risks
Growth Drivers
Positive Factors
Public investment and robust demand boosted manufacturing.
Potential Risks
Strong core sector growth excluding coal and steel remained weak.
Sustainability
Positive Factors
Economists expect construction to provide continued support after monsoons.
Potential Risks
Ongoing geopolitical challenges and reliance on public capex could hinder long-term growth.
Impact of US Tariffs
Positive Factors
US tariffs spurred front-loading of exports, potentially boosting August numbers.
Potential Risks
US tariffs could weigh on future manufacturing output and economic expansion.
- Manufacturing PMI (August)
- 59.3
- Core Sector Growth (August)
- 6.3%
- Steel Output Growth
- 14.2%
- Coal Output Growth
- 11.4%
- US Tariff on Indian Exports
- Up to 50%
Sources
Strong private sector expansion loses some steam in September, PMIs show
India's private sector growth strong in September, but off multi-year highs recorded in August - Economy News
India’s private sector growth cools in September as US tariffs weigh on exports
S&P Global: India’s FY26 growth steady at 6.5% on strong demand, tax reforms
India’s Private Sector Growth Remains Steady In September But Shows Signs Of Slowing — Here’s Why
India's GDP Growth Forecast at 6.5 pc in Current Fiscal
Merchandise Exports to Moderate to $110 Bn in Sept Qtr
India Retains Its position As Global Leader In Consumer Sentiment
India’s growth steady at 6.5%in FY26: S&P
