New Delhi, September 28: India’s industrial production grew 8.0 per cent year-on-year in August 2026, accelerating from a revised 7.4 per cent growth in July, as manufacturing maintained strong momentum and several investment- and transport-linked segments recorded double-digit growth.
The Index of Industrial Production (IIP) stood at 123.3 in August, up from 114.2 in August 2025, according to quick estimates released by the National Statistics Office under the Ministry of Statistics and Programme Implementation.
Manufacturing grew 9.0 per cent year-on-year during the month and has now recorded growth of 8 per cent or more for three consecutive months.
The expansion was broad-based across manufacturing, with 18 of the 23 industry groups covered at the two-digit NIC level recording positive year-on-year growth in August.
Electrical equipment recorded 30.9 per cent growth, while other transport equipment grew 25.3 per cent and motor vehicles, trailers and semi-trailers expanded 25.2 per cent. These were the three leading positive contributors to manufacturing growth during the month.
Growth in the motor vehicles segment received significant contributions from passenger cars, commercial vehicles and auto components, spares and accessories.
In other transport equipment, two-wheelers, railway rolling stock and related parts were among the significant contributors. Electrical equipment growth was supported by products including switchgear, circuit breakers, control and meter panels, optical-fibre connectors, UPS systems and solid-state drives.
The use-based data also showed strong growth in investment-linked categories. Capital goods production increased 16.9 per cent year-on-year, 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 recorded growth of 3.5 per cent, while consumer non-durables increased 2.1 per cent. Intermediate goods, capital goods and consumer durables were the three largest positive contributors to overall IIP growth under the use-based classification.
Among the major sectors, electricity and gas supply grew 12.3 per cent year-on-year in August, while water supply, sewerage and waste management expanded 6.3 per cent. Mining and quarrying moved in the opposite direction, contracting 5.6 per cent.
Within electricity and gas supply, renewable electricity generation grew 15.4 per cent and non-renewable electricity generation increased 12.3 per cent. Gas supply declined 2.4 per cent from a year earlier.
For the April-August period of 2026-27, overall industrial production grew 6.7 per cent year-on-year. Manufacturing expanded 7.4 per cent and electricity and gas supply grew 9.5 per cent, while mining and quarrying contracted 2.0 per cent.
The August figures are quick estimates and are subject to revision. The July 2026 indices were finalised in the latest release after incorporating updated production data received from source agencies.
