Archive · 28 Sep 2026
India’s Industrial Output Rises 8% as Manufacturing Leads
India’s factories and other industrial businesses made much more than they did a year earlier.
Overall industrial production grew by 8% in August 2026.
Factories grew by 9%, making them the biggest reason for the increase.
Electricity and gas supply grew even faster, by 12.3%.
Mining went down by 5.6%, partly during the monsoon season.
Many manufacturing industries grew, especially electrical equipment, vehicles and other transport equipment.
Eighteen of 23 manufacturing groups recorded growth.
Capital goods and intermediate goods also grew strongly, which may show more investment and production activity.
From April through August, industrial production increased 6.7%, compared with 4.2% during the same period last year.
India’s industrial production grew 8% year-on-year in August 2026, up from revised July growth of 7.4%.
Manufacturing output rose 9%, while electricity and gas supply increased 12.3%.
Mining and quarrying contracted 5.6%, while water supply, sewerage and waste management grew 6.3%.
Eighteen of 23 manufacturing industry groups expanded, led by electrical equipment, other transport equipment and motor vehicles.
Industrial production grew 6.7% from April to August 2026, compared with 4.2% during the same period a year earlier.
- Who
- India’s industrial sectors, with data released by the Ministry of Statistics and Programme Implementation and the National Statistics Office.
- What
- The Index of Industrial Production rose 8% year-on-year in August 2026, led by manufacturing and electricity and gas supply.
- When
- The data was released on September 28, 2026, covering August 2026.
- Where
- India.
- Why
- Manufacturing grew 9% and electricity and gas supply grew 12.3%, offsetting a 5.6% contraction in mining and quarrying.
Positive Growth Signals
Areas of Caution
Overall industrial momentum
Positive Growth Signals
The 8% annual increase, stronger manufacturing and electricity output, and 6.7% April-August growth indicate broad industrial strength.
Areas of Caution
The overall index fell 1.8% from July, and only two of six use-based categories grew faster than in the previous month.
Investment and demand
Positive Growth Signals
Capital goods grew 16.9%, intermediate goods 13.7% and consumer durables 11.1%, which economists said points to continued investment activity and stronger demand.
Areas of Caution
Primary goods grew only 3.5% and consumer non-durables 2.1%, indicating comparatively weaker growth in some areas linked to mass consumption.
Sector balance
Positive Growth Signals
Eighteen of 23 manufacturing groups recorded growth, led by electrical equipment, transport equipment and vehicles.
Areas of Caution
Mining and quarrying contracted 5.6%, while infrastructure and construction goods growth eased to 6.4% and primary-goods growth slowed to 3.5%.
- August IIP growth
- 8.0% year-on-year
- July IIP growth
- 7.4%, revised upward from the provisional estimate of 6.7%
- Manufacturing growth
- 9.0% in August 2026; manufacturing represents about 76.1% of the new IIP
- Electricity and gas supply growth
- 12.3% in August 2026
- Mining and quarrying
- Contracted 5.6% in August 2026
- Manufacturing leaders
- Electrical equipment grew 30.9%, other transport equipment 25.3%, and motor vehicles, trailers and semi-trailers 25.2%
- April-August industrial growth
- 6.7%, compared with 4.2% during the same period a year earlier
Sources
Manufacturing boost pushes IIP growth to 8%
Industrial production rises 8 pc in August: Govt data
Industrial production up by 8% in August as manufacturing strengthens
India’s industrial output growth hits 8% in August led by manufacturing, electricity generation
