India’s Industrial Production Sees 8% Growth in August, Manufacturing Sector Rises by 9%
NEW DELHI: India’s industrial production surged by 8% year-on-year in August 2026, up from a revised growth of 7.4% in July, as reported by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. The Index of Industrial Production (IIP) reached an index level of 123.3 in August, compared to 114.2 in the same month last year. These figures are preliminary estimates and may be revised in future reports.
The July IIP growth was adjusted upwards from an earlier provisional estimate of 6.7%. The National Statistics Office attributed the August growth to a robust 9% increase in the manufacturing sector and a notable 12.3% rise in the electricity and gas supply sector.
Manufacturing, which holds the largest weight in the IIP, has shown consistent growth, exceeding 8% for three consecutive months. In August, 18 of the 23 industry groups within manufacturing reported positive growth compared to the previous year. The manufacture of electrical equipment led the growth at 30.9%, followed by other transport equipment at 25.3% and motor vehicles, trailers, and semi-trailers at 25.2%.
The motor vehicle segment’s growth was bolstered by demand for auto components, passenger cars, and commercial vehicles. In the electrical equipment category, significant contributors included electrical apparatus for circuit protection, optical fibre connectors, and solid-state drives. The other transport equipment segment benefited from increased production of two-wheelers and railway rolling stock.
Under the use-based classification, capital goods output rose by 16.9% in August, while intermediate goods increased by 13.7%. Consumer durables saw an 11.1% rise, and infrastructure and construction goods grew by 6.4%. Primary goods recorded a growth of 3.5%, while consumer non-durables increased by 2.1%. The main contributors to the overall IIP growth in August were intermediate goods, capital goods, and consumer durables.
Cumulative industrial production growth from April to August 2026 stood at 6.7%, compared to 4.2% during the same period last year. The quick estimates for August were compiled with an 88% weighted response rate, while the final estimates for July were based on a 93.4% response rate.
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