Business Economy


India's industrial output growth accelerates to 8pc in Aug, manufacturing leads

New Delhi, Sep 28 (UNI) India's industrial activity picked up pace in August 2026, with overall output expanding 8pc year-on-year, according to official data released on Monday.
The growth was higher than the 6.7pc expansion recorded in July, with manufacturing and electricity generation providing a strong push.
The Index of Industrial Production (IIP) rose to 123.3 in August, compared with 114.2 in the same month last year.
Manufacturing output increased 9pc during the month, while electricity and gas supply registered growth of 12.3pc. Water supply, sewerage and waste management also expanded 6.3pc. Mining and quarrying was the only major sector to contract, declining 5.6pc.
Manufacturing growth remained above 8pc for the third consecutive month, indicating sustained momentum across several industrial segments. Of the 23 manufacturing industry groups tracked under the National Industrial Classification, 18 reported year-on-year growth in August.
Electrical equipment emerged as one of the strongest-performing segments, with output rising 30.9pc. Production of other transport equipment increased 25.3pc, while motor vehicles, trailers and semi-trailers recorded 25.2pc growth. Within the automobile segment, passenger cars, commercial vehicles and auto components, spares and accessories contributed significantly to the expansion.
The other transport equipment category was supported by higher production of two-wheelers, railway rolling stock and related parts, maintenance or service vehicles, as well as motorcycle and moped components.
In electrical equipment, products including switching and circuit-protection apparatus, optical-fibre connectors and cables, UPS systems and solid-state drives contributed to growth.
The use-based classification also pointed to broad-based industrial expansion. Capital goods output jumped 16.9pc in August, while intermediate goods production increased 13.7pc. Consumer durables recorded 11.1pc growth, followed by infrastructure and construction goods at 6.4pc.
Primary goods output rose 3.5pc, while consumer non-durables posted comparatively slower growth of 2.1pc.
Intermediate goods, capital goods and consumer durables emerged as the three biggest positive contributors to the overall IIP growth during August.
The August data indicate that industrial activity continued to gain momentum despite weakness in the mining sector, with manufacturing, investment-linked capital goods and electricity generation providing the key support to overall output. UNI VK SAS
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