Sep 28: India’s industrial production grew 8 per cent in August 2026 from a year earlier, driven mainly by strong growth in manufacturing, according to data released by the Ministry of Statistics and Programme Implementation.
The manufacturing sector grew 9 per cent during the month and has maintained growth of 8 per cent or more for three consecutive months. Manufacturing accounts for more than three-fourths of the Index of Industrial Production (IIP).
Growth was broad-based, with 18 of 23 manufacturing industry groups reporting an increase in output. Electrical equipment recorded the highest growth at 30.9 per cent, followed by machinery and equipment at 25.3 per cent and motor vehicles at 25.2 per cent.
The electricity and gas supply sector also performed strongly, growing 12.3 per cent, while water supply, sewerage and waste management increased 6.3 per cent. Mining, however, contracted 5.6 per cent during the month.
Investment-related activity remained strong, with capital goods production rising 16.9 per cent. The segment reflects demand for machinery and equipment used to expand industrial capacity.
Consumer demand also showed momentum, with consumer durables growing 11.1 per cent in August. Production of infrastructure and construction goods increased 6.4 per cent, supported by ongoing investment in roads, railways, ports and other infrastructure projects.
The strong performance of manufacturing, capital goods and consumer durables points to continued momentum in industrial activity and could support investment, employment and broader economic growth.
MoSPI has also revised the IIP series by adopting Output Producer Price Index (PPI) as the deflator for selected items instead of the Wholesale Price Index (WPI). The revised series covers 234 of the 463 item groups in the IIP basket and supersedes the earlier WPI-based series.
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