IIP Grows 6.7% in September 2026 on Power and Factories

The Ministry of Statistics and Programme Implementation released the quick estimates of the Index of Industrial Production (IIP) for September 2026 on 28 October 2026. Factory output grew 6.7 per cent over the same month a year earlier. The index is now compiled on the revised base of 2022-23 equal to 100, and the quick estimate for September stands at 124.3 against 116.5 in September 2025.

Sector by sector

Manufacturing, which carries the heaviest weight in the index, grew 7.6 per cent. Electricity and gas supply was the fastest mover at 11.2 per cent, while water supply, sewerage and waste management rose 5.8 per cent. Mining and quarrying was the one weak spot, contracting 6.2 per cent. The pace of overall growth was slower than in August 2026, when the quick estimate had shown 8.0 per cent.

Which factories did well

Within manufacturing, 17 of the 23 industry groups at the two-digit level of the national industrial classification grew over September 2025. The three biggest positive contributors were the manufacture of electrical equipment, up 33.9 per cent, the manufacture of rubber and plastics products, up 19.9 per cent, and the manufacture of motor vehicles, trailers and semi-trailers, up 19.0 per cent. Passenger cars, commercial vehicles and auto components lifted the vehicles group, while switchgear, circuit breakers, uninterruptible power supplies and optical fibre connectors drove electrical equipment.

The use-based picture

Read by end use, intermediate goods grew 12.2 per cent, capital goods 10.4 per cent, infrastructure and construction goods 7.2 per cent, consumer durables 6.0 per cent and primary goods 4.0 per cent. Consumer non-durables were almost flat at 1.4 per cent, which is the figure analysts watch for everyday rural and urban demand. Capital goods, a proxy for investment, had the highest index of the group at 153.4. The top three contributors to growth by end use were intermediate goods, primary goods and capital goods.

How the index works

The quick estimate is published on the 28th of every month, or the next working day if the 28th is a holiday, and is revised later as fuller data arrives from source agencies. The September estimate was compiled at a weighted response rate of 86.5 per cent, while the final revision for August 2026 rested on 92.0 per cent. The October 2026 index is due on 30 November 2026.