IIP Grows 8.0% in August 2026 on Manufacturing and Power

The Ministry of Statistics and Programme Implementation has put out the quick estimate of the Index of Industrial Production (IIP) for August 2026. Factory output rose 8.0 per cent over the same month a year earlier, against a quick estimate of 6.7 per cent for July. The index uses 2022-23 as its base year and is released on the 28th of every month, or the next working day when the 28th is a holiday.

How the sectors did

Manufacturing carried the month with growth of 9.0 per cent, while electricity and gas supply expanded 12.3 per cent. Water supply, sewerage and waste management rose 6.3 per cent. Mining and quarrying was the one sector to contract, falling 5.6 per cent. Manufacturing has now posted growth of eight per cent or more for three months in a row.

Which industries led

The headline index stood at 123.3 for the month, against 114.2 a year earlier. Within manufacturing, 18 of the 23 industry groups at the two-digit level of the national industrial classification grew. The three biggest positive contributors were manufacture of electrical equipment, up 30.9 per cent, manufacture of other transport equipment, up 25.3 per cent, and manufacture of motor vehicles, trailers and semi-trailers, up 25.2 per cent. Passenger cars, commercial vehicles and auto components drove the vehicle group; switchgear, circuit breakers and optical fibre connectors drove the electrical equipment group; two-wheelers and railway rolling stock drove the transport equipment group.

The use-based picture

Classified by end use, capital goods grew fastest at 16.9 per cent, followed by intermediate goods at 13.7 per cent and consumer durables at 11.1 per cent. Infrastructure and construction goods rose 6.4 per cent, primary goods 3.5 per cent and consumer non-durables 2.1 per cent. Intermediate goods, capital goods and consumer durables were the top three contributors to the month's growth. The quick estimates were compiled at a weighted response rate of 88.0 per cent. The index for September is due on Wednesday, 28 October 2026.