India's industrial output growth accelerates to 8% in August 2026

India's industrial production grew 8% year-on-year in August 2026, accelerating from 6.7% in July. The rise was supported by strong growth in manufacturing (9%) and electricity output (12.3%), though the mining sector saw a contraction.

India's industrial production grew 8 per cent year-on-year in August 2026, accelerating from 6.7 per cent growth in July, with manufacturing and electricity output providing the main support, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

The Index of Industrial Production (IIP) recorded an index level of 123.3 in August, compared with 114.2 in the same month last year. The August figures are quick estimates and are subject to revision in subsequent releases.

Sector-wise Performance

Manufacturing, which carries the largest weight in the IIP, grew 9 per cent in August. The sector has now recorded growth of 8 per cent or more for three consecutive months, according to the ministry.

Electricity and gas supply recorded 12.3 per cent growth during the month, while water supply, sewerage and waste management rose 6.3 per cent. However, mining and quarrying contracted 5.6 per cent in August.

Manufacturing Highlights

Within manufacturing, 18 of the 23 industry groups at the two-digit level recorded positive growth in August 2025.

Manufacture of electrical equipment recorded the highest growth among the major contributing industry groups at 30.9 per cent, followed by other transport equipment at 25.3 per cent and motor vehicles, trailers and semi-trailers at 25.2 per cent. The motor vehicle segment was supported by auto components, spares and accessories, passenger cars and commercial vehicles. Electrical equipment growth was driven by electrical apparatus for switching or protecting electrical circuits, optical fibre and cable connectors, UPS and solid-state drives.

Growth by Use-Based Classification

Under the use-based classification, capital goods registered 16.9 per cent growth in August, while intermediate goods grew 13.7 per cent. Consumer durables rose 11.1 per cent, and infrastructure and construction goods increased 6.4 per cent. Primary goods grew 3.5 per cent, while consumer non-durables recorded a comparatively modest 2.1 per cent increase.

Data Methodology

The ministry said the quick estimates for August were compiled with an 88 per cent weighted response rate, while July's final revision was based on a 93.4 per cent response rate. (ANI)

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