Broad Industrial Recovery
India Industrial Output Surges 8% in August as Manufacturing and Electricity Sectors Grow
Anonymous
India’s industrial production grew 8% year over year in August 2026, accelerating from a revised 7.4% in July and 4.7% a year earlier. Manufacturing rose 9%, with output increasing in 18 of 23 industry groups, while electricity and gas supply grew 12.3%; mining and quarrying contracted 5.6%. Capital and intermediate goods recorded strong growth, alongside consumer durables. Economists said the recent pickup points to a broader industrial recovery supported by investment and credit. The figures are among the first releases under India’s revamped industrial production index series, which expands the sectors and products tracked.
Key Points
1
The statistics ministry said manufacturing growth had been at least 8% for three consecutive months. In August, motor vehicles, electrical equipment and other transport equipment were among the fastest-growing groups, rising 25.2%, 30.9% and 25.3%, respectively.
2
Electricity and gas supply growth was attributed partly to higher temperatures during heat-wave conditions; both conventional and renewable electricity generation recorded double-digit growth in August.
3
The revamped IIP series updated the base year to 2022–23 and expanded its coverage to 1,042 products across 463 item groups. It also added separate indices for renewable and non-renewable electricity generation.
4
For the first five months of fiscal 2026–27, industrial production grew 6.7%, compared with 4.2% in the same period a year earlier.
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