Industrial production jumps 8% in August: What drove the growth?

The latest Index of Industrial Production (IIP) data showed that manufacturing output rose 9% in August, while electricity and gas supply grew 12.3%.

In Short

• India's industrial production grew 8% in August 2026, up from 7.4% in July
• Manufacturing output rose 9%, electricity and gas supply grew 12.3%
• Mining sector contracted 5.6% compared to growth last year

India’s industrial production grew 8% in August 2026, up from 7.4% in July, mainly driven by strong growth in manufacturing, according to government data released on Monday.

The latest Index of Industrial Production (IIP) data showed that manufacturing output rose 9% in August, while electricity and gas supply grew 12.3%.

This is the fifth monthly IIP data release under the new series.

MANUFACTURING LEADS INDUSTRIAL GROWTH

The mining and quarrying sector, however, contracted 5.6% in August, compared with a 15.8% growth in the same month last year.

The IIP had grown 4.7% in August 2025.

The July IIP growth has also been revised upwards to 7.4% from the earlier provisional estimate of 6.7%.

During April-August of the current financial year, industrial production grew 6.7%, compared with 4.2% during the same period a year ago.

Within manufacturing, 18 of the 23 industry groups recorded positive growth in August compared with the same month last year.

The three biggest contributors were the manufacture of electrical equipment, which grew 30.9%, other transport equipment at 25.3%, and motor vehicles, trailers and semi-trailers at 25.2%.

The motor vehicles segment saw significant contributions from auto components, spares and accessories, passenger cars and commercial vehicles.

In electrical equipment, items such as switchgear, circuit breakers, control and meter panels, optical fibre connectors, UPS and solid-state drives contributed to growth.

The other transport equipment segment was supported by two-wheelers, railway rolling stock and parts, maintenance or service vehicles, and motorcycle parts and accessories.

CAPITAL AND INTERMEDIATE GOODS SEE STRONG GROWTH

The use-based classification also showed strong growth across several categories.

Capital goods grew 16.9% in August, while intermediate goods rose 13.7%. Consumer durables increased 11.1%, infrastructure and construction goods grew 6.4%, and primary goods rose 3.5%.

Consumer non-durables recorded a more modest growth of 2.1%.

The top three contributors to overall IIP growth in August were intermediate goods, capital goods and consumer durables.

The indices for August stood at 111.8 for primary goods, 140.7 for capital goods, 131.8 for intermediate goods and 132.5 for infrastructure and construction goods.

The index for consumer durables stood at 129.4, while that for consumer non-durables was 114.3.

- Ends