Search

Cookies

We use cookies to improve your experience. By continuing, you accept our use of cookies.

Business

India's Industrial Growth Moderates to 6.7% in September, Manufacturing Up 7.6%

· · 2 min read

India's industrial output expanded 6.7% year-on-year in September 2026, a slowdown from August's 8%. Manufacturing saw a robust 7.6% rise, while mining activity contracted during the period.

India's industrial production experienced a moderation in growth during September 2026, expanding by 6.7% year-on-year. This figure, released by the Ministry of Statistics and Programme Implementation (MoSPI), indicates a slowdown from the revised 7.8% growth recorded in August.

Key Sector Performance

Government data highlighted strong performances in key sectors, while others faced contraction:

  • Manufacturing Output: Rose by a significant 7.6% in September.
  • Electricity and Gas Supply: Grew by 11.2%.
  • Mining and Quarrying: Contracted by 6.2%.
  • Water Supply, Sewerage, and Waste Management: Increased by 5.8%.

The Index of Industrial Production (IIP) stood at 124.3 in September, compared to 116.5 in the same month last year, based on the revised base year of 2022-23.

Manufacturing Sub-Groups Show Strong Gains

Within the manufacturing sector, 17 of the 23 industry groups reported positive growth. Notably, electrical equipment manufacturing surged by 33.9%, demonstrating substantial expansion. This was followed by rubber and plastic products, which grew by 19.9%, and motor vehicles, trailers, and semi-trailers, increasing by 19%.

Growth in automobile manufacturing was primarily supported by increased production of auto components, passenger cars, and commercial vehicles. The electrical equipment segment benefited from higher output of switchgear, circuit breakers, UPS systems, and other components.

Use-Based Classification Highlights

An analysis based on the use-based classification revealed varying growth across different categories:

  • Intermediate Goods: Recorded the strongest expansion at 12.2%.
  • Capital Goods: Grew by 10.4%.
  • Infrastructure and Construction Goods: Increased by 7.2%.
  • Consumer Durables: Saw a 6% growth.
  • Primary Goods: Rose by 4%.

However, consumer non-durables showed a more modest growth of 1.4%, indicating a relatively weaker production performance in this category.

MoSPI noted that the September figures are provisional and subject to revisions as more comprehensive production data becomes available. These initial estimates were compiled using a weighted response rate of 86.5%. The next IIP release, covering October 2026, is anticipated on November 30, 2026.

Related