India’s Industrial Production Growth Rises to 8% in August as Manufacturing Expands 9%

India’s industrial production grew by 8% year-on-year in August 2026, supported by strong expansion in manufacturing and electricity and gas supply. The latest data indicate that industrial activity maintained healthy momentum during the month, while the previous month’s growth was also revised higher.

Manufacturing, which carries the largest weight in the Index of Industrial Production, expanded by 9% in August. Electricity and gas supply recorded even stronger growth of 12.3%, while water supply, sewerage and waste management increased by 6.3%. Mining was the main weak spot, contracting by 5.6% during the month.

Manufacturing Drives Industrial Expansion

The 9% growth in manufacturing was the main contributor to the overall rise in industrial production. Because manufacturing has the highest weight within the IIP framework, its performance has a major influence on the headline industrial growth rate.

The strong expansion points to continued activity across India’s factory sector and provides a positive signal for broader industrial demand. Manufacturing growth also has wider implications for employment, supply chains, freight movement and demand for intermediate goods across the economy.

Electricity and Gas Supply Rise 12.3%

Electricity and gas supply recorded growth of 12.3% in August, making it one of the strongest-performing components of the industrial index during the month. Higher output in this segment generally reflects stronger demand from industry, commercial activity and households.

The rise complements the expansion in manufacturing and indicates that energy demand remained robust as industrial activity increased. Together, manufacturing and energy supply provided the strongest support to the overall 8% IIP growth rate.

Water Supply and Waste Management Record Healthy Growth

Water supply, sewerage and waste management grew by 6.3% in August. The performance of this segment adds another positive component to the broader industrial picture and reflects continued activity in essential urban and infrastructure services.

Under the revised IIP framework, such infrastructure-linked sectors provide a wider picture of industrial activity than traditional factory and mining indicators alone.

Mining Contracts 5.6%

Mining remained the only major area of weakness, with output contracting by 5.6% during August. The decline partly offset gains elsewhere in the industrial economy but was not large enough to prevent the overall index from recording strong growth.

The divergence between mining and manufacturing shows that industrial momentum during the month was driven primarily by factory production and utility output rather than extraction activity.

July IIP Growth Revised Higher

Industrial momentum entering August was also stronger than initially estimated. July’s IIP growth was revised upward to 7.4% from the earlier estimate of 6.7%.

The revision follows an already strong industrial performance in the preceding months and suggests that the pace of expansion during the current quarter has been broader than earlier readings indicated.

Strong August Data Reinforce Industrial Momentum

The 8% rise in industrial production, combined with 9% manufacturing growth and double-digit expansion in electricity and gas supply, points to solid momentum across several important parts of the economy.

With manufacturing remaining the principal growth engine and infrastructure-linked activity also expanding, the August IIP data strengthen the picture of a broad-based industrial recovery and provide a firm foundation for continued growth in India’s manufacturing economy.

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References

Ministry of Statistics and Programme Implementation, Government of India — Quick Estimates of the Index of Industrial Production for August 2026, released September 28, 2026.

Akashvani News — “India’s IIP growth rises to 8% in August 2026,” September 28, 2026.

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