Key Details
The National Statistics Office’s 28 September 2026 release measures industrial production across four sectors, using 2022–23 as the base year. August figures are quick estimates.
Indicator | August 2026 Growth, Year-on-Year |
|---|---|
Overall Index of Industrial Production (IIP) | 8.0% |
Manufacturing | 9.0% |
Mining & Quarrying | −5.6% |
Electricity & Gas Supply | 12.3% |
Water Supply, Sewerage & Waste Management | 6.3% |
Overall growth was 7.4% in July after final revision. Across April–August 2026, industrial output grew 6.7%, compared with 4.2% in the corresponding period a year earlier.
Vehicles and Electrical Equipment Drive Manufacturing
Manufacturing, which carries roughly 76% of the IIP’s weight, sustained growth above 8% for a third consecutive month. 18 of 23 manufacturing industry groups expanded in August, indicating that the increase extended beyond a handful of industries.
The largest positive contributors within manufacturing were motor vehicles, trailers and semi-trailers, electrical equipment, and other transport equipment, growing by 25.2%, 30.9% and 25.3%, respectively. Contributing products included auto components, passenger and commercial vehicles, electrical switching equipment, two-wheelers and railway rolling stock.
Production Strength Is Greater in Equipment and Inputs
The classification of output by its intended use reveals a sharper divide:
Capital goods, such as machinery used in production, grew 16.9%, while intermediate goods, used to make other products, rose 13.7%.
Consumer durables grew 11.1%, compared with just 2.1% for consumer non-durables, which include goods consumed relatively quickly.
Intermediate goods, capital goods and consumer durables were the three largest positive contributors to overall growth under this classification. The divergence also extends beyond August: during April–August, capital goods grew 16.3%, against 1.2% for consumer non-durables. Industrial expansion is therefore stronger in production equipment and selected consumer products than across the full consumer-goods basket.
Mining Remains a Drag on Expansion
The 5.6% contraction in mining and quarrying offset part of the increase elsewhere. Non-metallic minerals fell 12.8% and fuel minerals 5.7%, while metallic minerals increased. Mining output was also down 2.0% across April–August, making the weakness more than a single-month feature.
Meanwhile, electricity and gas supply grew 12.3%, alongside manufacturing’s expansion. These sectoral differences matter: the headline increase does not describe a uniform improvement across industrial activity.
Policy Relevance
For Indian economic and industrial policymakers, the main issue is how widely production growth is spreading. Strong capital-goods output is relevant to investment activity, but it does not by itself establish that firms have installed new capacity. Likewise, subdued non-durable production warrants closer examination of sales and inventories before drawing conclusions about household demand.
Sector-specific diagnosis is particularly important where mining and apparel output are declining despite aggregate growth. The release identifies these divergences but does not establish their causes. August estimates also remain provisional, with a weighted response rate of 88%, making subsequent revisions relevant to assessing the strength of the expansion.
Follow the Full Press Release Here: Quick Estimates of Index of Industrial Production and Use- Based Index for the Month of August 2026 (Base 2022-23=100)