August IIP Growth Jumps To 8% As Manufacturing, Power Output Surges

Manufacturing sustains momentum for third month; electricity output rises 12.3% as mining contracts 5.6%

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Manufacturing, which accounts for the largest share of the index, expanded 9%.
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Summary is AI-generated, newsroom-reviewed
  • India's industrial production grew 8% in August 2026, up from 6.7% in July
  • Manufacturing expanded 9%, electricity and gas supply rose 12.3% in August
  • Mining and quarrying contracted 5.6%, reversing July's 10.7% growth
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India's industrial production growth accelerated to 8% in August 2026, up from 6.7% in July, as manufacturing activity strengthened and electricity generation recorded double-digit growth, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.

The Index of Industrial Production (IIP) rose to 123.3 in August from 114.2 a year earlier. 

Manufacturing, which accounts for the largest share of the index, expanded 9%, while electricity and gas supply grew 12.3%. Water supply, sewerage and waste management rose 6.3%.

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The latest data marked the third consecutive month in which manufacturing growth remained at or above 8%, indicating sustained momentum across several industrial segments.

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Mining and quarrying, however, remained a drag on overall industrial growth, contracting 5.6% in August. 

The sector had expanded 10.7% in July before reversing sharply in August. Within manufacturing, 18 of the 23 industry groups recorded year-on-year growth. 

Electrical equipment production posted the strongest expansion at 30.9%, followed by other transport equipment at 25.3% and motor vehicles, trailers and semi-trailers at 25.2%.

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The automobile sector's growth was supported by higher production of auto components, passenger cars and commercial vehicles, according to the ministry. 

In electrical equipment, switching and circuit-protection equipment, optical-fibre connectors, UPS systems and solid-state drives were among the products contributing to growth.

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Production of other transport equipment was lifted by two-wheelers, railway rolling stock and related parts and accessories.

Several other manufacturing segments also recorded strong growth. Computer, electronic and optical products rose 19.3%, while rubber and plastics products increased 21.4%. 

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Fabricated metal products grew 16.9% and machinery and equipment expanded 10.3%.

On the other hand, tobacco products contracted 8%, while wearing apparel declined 7.4%. Production of chemicals and chemical products fell 0.5%, while coke and refined petroleum products declined 0.6%.

The electricity and gas sector recorded a 12.3% expansion, led by a 13.3% rise in electricity generation. 

Renewable electricity generation increased 15.4%, while non-renewable generation grew 12.3%. Gas supply, however, declined 2.4%.

The use-based classification showed broad-based growth. Capital goods surged 16.9%, while intermediate goods rose 13.7%. Consumer durables increased 11.1% and infrastructure and construction goods grew 6.4%. 

Primary goods recorded a more modest 3.5% expansion, while consumer non-durables rose 2.1%.

For the April-August period, overall IIP growth stood at 6.7%, compared with 4.2% in the corresponding period a year earlier. Manufacturing grew 7.4% during the period, while electricity and gas supply expanded 9.5%.

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