India's industrial production grew by 6.7% in September 2026, according to official data released by the Ministry of Statistics and Programme Implementation. This growth was supported mainly by a rise in manufacturing and electricity output, although it was lower than the 8% growth recorded in August 2026.
- The Index of Industrial Production (IIP) stood at 124.3 in September 2026, compared to 116.5 in September 2025.
- Manufacturing output increased by 7.6%, while electricity and gas supply expanded by 11.2%.
- Mining and quarrying output decreased by 6.2% during the month.
- Water supply, sewerage, and waste management grew by 5.8%.
- Seventeen out of 23 manufacturing industry groups showed positive growth.
- Intermediate goods output rose 12.2%, capital goods by 10.4%, and infrastructure and construction goods by 7.2%.
What is the Index of Industrial Production (IIP)?
The Index of Industrial Production (IIP) measures the growth of various sectors in the industrial economy, such as manufacturing, mining, and electricity. It helps to understand how well industries are performing over time.
Which sectors contributed to the growth in September 2026?
Manufacturing and electricity sectors were the main contributors to the growth in industrial production. Manufacturing output increased by 7.6%, and electricity and gas supply grew by 11.2%. However, mining and quarrying output declined by 6.2%.
Which manufacturing industries showed the most growth?
Within manufacturing, 17 out of 23 industry groups recorded positive growth compared to the previous year. The manufacture of electrical equipment led with a 33.9% increase. Rubber and plastics products grew by 19.9%, and motor vehicles, trailers, and semi-trailers increased by 19%.
Growth in motor vehicle manufacturing was supported by auto components, spares, accessories, passenger cars, and commercial vehicles. Electrical equipment growth was driven by products like switchgear, circuit breakers, uninterruptible power supply (UPS) systems, and solid-state drives. In the rubber and plastics segment, key contributors included acrylic sheets, tyres for light motor vehicles, and rubber V-belts and conveyors.
How did goods classification impact production growth?
According to use-based classification, intermediate goods output rose by 12.2%, capital goods production expanded by 10.4%, and infrastructure and construction goods grew by 7.2%. Primary goods output increased by 4%. Consumer durables production went up by 6%, while consumer non-durables saw a modest growth of 1.4%.
What are the key takeaways from the September 2026 industrial production data?
- India's industrial production grew by 6.7%, showing steady economic activity.
- Manufacturing and electricity sectors were the main drivers of growth.
- Mining sector experienced a decline, affecting overall growth.
- Intermediate, capital, and infrastructure goods contributed most to the increase.
- Growth was widespread across many manufacturing industries, especially electrical equipment and motor vehicles.
When will the next IIP data be released?
The Index of Industrial Production data for October 2026 is scheduled to be released on November 30, 2026.
