India’s Index of Industrial Production expanded by 8.0 per cent in August 2026 compared to the same month a year earlier, according to quick estimates released by the Ministry of Statistics and Programme Implementation on 28 September 2026. This marks an improvement from July’s 6.7 per cent growth. The overall index stood at 123.3 in August 2026, up from 114.2 in August 2025.
Manufacturing drove the expansion, recording 9.0 per cent growth, while the electricity and gas supply sector showed particularly strong momentum at 12.3 per cent. Mining and quarrying contracted by 5.6 per cent. This represents the third consecutive month in which manufacturing has achieved growth of 8 per cent or higher.
Key facts
- Overall IIP growth rate: 8.0 per cent in August 2026 versus 6.7 per cent in July 2026
- Manufacturing sector growth: 9.0 per cent
- Electricity and Gas Supply growth: 12.3 per cent
- Mining and Quarrying growth: minus 5.6 per cent
- Water Supply, Sewerage and Waste Management growth: 6.3 per cent
- IIP index value: 123.3 in August 2026 against 114.2 in August 2025
- Manufacturing index: 126.6 in August 2026
- Electricity and Gas Supply index: 133.9 in August 2026
- Data collection rate: 88.0 per cent weighted response
- Release date: 28th of each month (or next working day)
What the manufacturing sector contributed
Within manufacturing, 18 out of 23 industry groups measured at the two-digit level showed positive growth in August 2026. Three sectors led the expansion: manufacture of electrical equipment grew 30.9 per cent, manufacture of motor vehicles and trailers expanded 25.2 per cent, and manufacture of other transport equipment rose 25.3 per cent.
The electrical equipment group benefited from strong output of switchgear, circuit breakers, optical fibre connectors, and uninterruptible power supplies. The motor vehicles group was lifted by growth in auto components, passenger cars, and commercial vehicles. The transport equipment group saw increases in two-wheeler production, railway rolling stock, and motorcycle parts.
Performance by use of goods
When classified by how the goods are used, capital goods showed the strongest expansion at 16.9 per cent growth, indicating increased investment in machinery and equipment. Intermediate goods, used in further production, grew 13.7 per cent. Consumer durables expanded 11.1 per cent, though consumer non-durables inched forward by just 2.1 per cent. Primary goods, the raw materials stage, grew only 3.5 per cent, while infrastructure and construction goods rose 6.4 per cent.
Sectors facing headwinds
Mining and quarrying remained weak. Fuel minerals declined 5.7 per cent and non-metallic minerals fell 12.8 per cent. This offset gains in metallic minerals, which grew 5.0 per cent. The electricity and gas sector’s overall strength came from renewable electricity generation, which jumped 15.4 per cent, and non-renewable generation, which rose 12.3 per cent. Gas supply contracted marginally by 2.4 per cent.
What this means for you
These figures matter to investors and businesses tracking India’s economic momentum. The sustained manufacturing growth signals improving factory output and industrial capacity utilisation. The strength in capital goods and intermediate goods suggests companies are investing in new equipment and production is expanding across supply chains. However, weakness in mining and primary goods may indicate constraints in raw material availability or demand.
Job seekers in manufacturing, electrical goods, automotive and transport sectors may find growing employment opportunities as these industries expand. Policymakers track IIP data to gauge the health of the non-agricultural economy and to frame policy responses.
What happens next
The quick estimates for August 2026 released now will be subject to revision in subsequent months as more complete data arrives from factories and producing units. The Index of Industrial Production for September 2026 is scheduled for release on Wednesday, 28 October 2026.