India's industrial production grew 8.0% in August 2026 compared with August 2025, according to the Quick Estimate of the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation (MoSPI) on September 28, 2026. Growth in July 2026 had been 6.7% as per its Quick Estimate.
The rise was driven by manufacturing, which grew 9.0%, and electricity and gas supply, which grew 12.3%. The ministry's release said manufacturing has now grown by 8% or more for three consecutive months.
Sector-wise growth, August 2026
| Sector | Growth over August 2025 | Index (base 2022-23 = 100) |
|---|---|---|
| Mining and quarrying | -5.6% | 85.7 |
| Manufacturing | 9.0% | 126.6 |
| Electricity and gas supply | 12.3% | 133.9 |
| Water supply, sewerage and waste management | 6.3% | 147.6 |
| Overall IIP | 8.0% | 123.3 (114.2 a year earlier) |
What drove manufacturing
Within manufacturing, 18 of the 23 industry groups recorded growth. The three biggest contributors named by the ministry were:
- Motor vehicles, trailers and semi-trailers - up 25.2%, with auto components, passenger cars and commercial vehicles adding the most.
- Electrical equipment - up 30.9%, led by switchgear and circuit breakers, optical fibre connectors, and UPS and solid-state drives.
- Other transport equipment - up 25.3%, led by two-wheelers, railway rolling stock and motorcycle parts.
By type of goods
Under the use-based classification, growth in August 2026 was:
- Capital goods: 16.9%
- Intermediate goods: 13.7%
- Consumer durables: 11.1%
- Infrastructure and construction goods: 6.4%
- Primary goods: 3.5%
- Consumer non-durables: 2.1%
Intermediate goods, capital goods and consumer durables were the top three contributors to overall growth.
What it means
- Factories and investment: strong growth in capital goods - machinery and equipment used to make other goods - is usually read as a sign that companies are adding capacity.
- Households: consumer durables such as vehicles and appliances grew much faster than everyday consumer non-durables, which rose only 2.1%.
- Mining was the weak spot, contracting 5.6% during the month.
Things to keep in mind
The August figure is a Quick Estimate, compiled at a weighted response rate of 88.0%, and it will be revised in later releases under MoSPI's revision policy. Along with this release, the July 2026 index was given its final revision. The index uses 2022-23 as its base year (2022-23 = 100), so index levels should only be compared with other figures on the same base.
What happens next
MoSPI releases the IIP on the 28th of every month, or on the next working day if the 28th is a holiday. The data for September 2026 will be released on Wednesday, October 28, 2026. Detailed tables are available on the ministry's eSankhyiki portal.
