India’s industrial production grew 8 per cent year-on-year in August 2026, accelerating from a quick estimate of 6.7 per cent growth in July, led by strong expansion in manufacturing and electricity and gas supply, official data showed on Monday.
The Index of Industrial Production (IIP) stood at 123.3 in August, compared with 114.2 in the corresponding month last year.
Manufacturing output grew 9 per cent during the month, while electricity and gas supply rose 12.3 per cent. Water supply, sewerage and waste management recorded growth of 6.3 per cent. Mining and quarrying, however, contracted 5.6 per cent.
The manufacturing sector recorded growth of 8 per cent or more for the third consecutive month.
The manufacturing index stood at 126.6 in August, while the indices for mining and quarrying, electricity and gas supply, and water supply, sewerage and waste management stood at 85.7, 133.9 and 147.6, respectively.
Of the 23 manufacturing industry groups at the two-digit level under the National Industrial Classification, 18 recorded positive growth in August compared with the same month last year.
Among the major positive contributors, manufacture of electrical equipment grew 30.9 per cent, manufacture of other transport equipment increased 25.3 per cent, and manufacture of motor vehicles, trailers and semi-trailers rose 25.2 per cent.
Within motor vehicles, auto components, spares and accessories, passenger cars and commercial vehicles made significant contributions to growth.
In electrical equipment, significant contributors included electrical apparatus used for switching or protecting electrical circuits and their parts, end-face connectors for optical fibres and cables, and UPS and solid-state drives.
Growth in other transport equipment was supported by two-wheelers, railway rolling stock and parts, maintenance or service vehicles, and parts and accessories of motorcycles, mopeds and sidecars.
Under the use-based classification, capital goods recorded growth of 16.9 per cent in August, while intermediate goods grew 13.7 per cent. Consumer durables rose 11.1 per cent, infrastructure and construction goods increased 6.4 per cent, primary goods grew 3.5 per cent, and consumer non-durables expanded 2.1 per cent.
The indices 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 indices for consumer durables and consumer non-durables were 129.4 and 114.3, respectively.
Intermediate goods, capital goods and consumer durables were the top three positive contributors to overall IIP growth during the month.
