India’s IIP growth in August 2026 accelerated to 8.0% year-on-year, up from 6.7% in July, according to the Quick Estimate released by the Ministry of Statistics and Programme Implementation through PIB on September 28.
The increase was supported by a 9.0% rise in manufacturing and a 12.3% increase in electricity and gas supply. Manufacturing has now recorded growth of 8% or more for three consecutive months.
Manufacturing Drives Industrial Growth
The IIP stood at 123.3 in August 2026, compared with 114.2 in August 2025. Mining and quarrying was the only major sector to contract, declining 5.6%. Water supply, sewerage and waste management grew 6.3%.
Within manufacturing, 18 of 23 industry groups at the NIC-2025 two-digit level posted positive growth. The strongest growth came from the manufacture of electrical equipment 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 was supported by auto components, spares and accessories, passenger cars and commercial vehicles. Electrical equipment growth received significant contributions from electrical switching and protection equipment, optical-fibre connectors, UPS and solid-state drives. In other transport equipment, two-wheelers, railway rolling stock and related parts contributed significantly.
Capital Goods and Intermediate Goods See Strong Growth
Use-Based Classification showed growth across all six categories. Capital goods rose 16.9%, while intermediate goods increased 13.7%. Consumer durables grew 11.1%, infrastructure and construction goods increased 6.4%, primary goods rose 3.5%, and consumer non-durables gained 2.1%.
The August indices were 111.8 for primary goods, 140.7 for capital goods, 131.8 for intermediate goods and 132.5 for infrastructure/construction goods. Consumer durables and consumer non-durables stood at 129.4 and 114.3, respectively.
The July 2026 IIP figures have been finally revised using updated data. The August Quick Estimate was compiled with an 88.0% weighted response rate, while July’s final revision used a 93.4% response rate.
The next IIP release, covering September 2026, is scheduled for October 28, 2026.
Q1. What was India’s IIP growth in August 2026?
India’s IIP grew 8.0% year-on-year in August 2026.
Q2. How much did manufacturing grow in August 2026?
Manufacturing output increased 9.0% in August 2026 compared with August 2025.
Q3. Which IIP sector recorded the highest growth in August 2026?
Among the four main sectors listed, electricity and gas supply recorded the highest growth at 12.3%.
Q4. How did capital goods perform in August 2026?
Capital goods recorded 16.9% growth under the Use-Based Classification.
Q5. When will the September 2026 IIP data be released?
The IIP release for September 2026 is scheduled for October 28, 2026.
