Archive · 29 Sep 2026
India's August Industrial Output Growth Hits 8% On Manufacturing, Electricity
India made more goods and generated more electricity in August 2026.
Overall industrial production grew by 8% compared with August last year.
Factories were the biggest reason for the increase, with manufacturing rising 9%.
Electricity production grew even faster, helped by unusually hot weather and low rainfall.
Mining production fell during the month.
Many industries, including vehicles and electrical equipment, produced much more than they did a year earlier.
Industrial production has also grown faster during the first five months of the financial year than during the same period last year.
Economists said growth could slow later because costs, interest rates and weaker demand may make production harder.
India’s industrial production grew 8% year-on-year in August 2026, accelerating from a revised 7.4% in July.
Manufacturing output rose 9%, while electricity generation increased 12.3%; mining and quarrying contracted 5.6%.
Motor vehicles, electrical equipment and other transport equipment recorded growth of 25.2%, 30.9% and 25.3%, respectively.
Industrial output expanded 6.7% during April-August, compared with 4.2% in the same period a year earlier.
Economists warned that input costs, high interest rates, weaker global demand and softer rural demand could slow growth later in the financial year.
- Who
- India’s manufacturing, electricity and mining sectors, with analysis from Crisil economist Dipti Deshpande.
- What
- The Index of Industrial Production grew 8% year-on-year in August 2026.
- When
- August 2026; the data was released on September 29, 2026.
- Where
- India.
- Why
- Growth was driven mainly by manufacturing and electricity generation, although mining contracted.
- August IIP growth
- 8% year-on-year
- July IIP growth
- Revised to 7.4%
- Manufacturing growth
- 9% in August
- Electricity growth
- 12.3% in August
- Mining and quarrying
- Contracted 5.6%
- April-August industrial growth
- 6.7%, compared with 4.2% a year earlier
- Strongest listed industry growth
- Electrical equipment output rose 30.9%