According to MoSPI Quick Estimates, India's Index of Industrial Production (IIP) grew by 8.0% in August 2026, led by strong growth in manufacturing (9.0%) and electricity (12.3%).
WHAT HAPPENED
The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), released the Quick Estimates of the Index of Industrial Production (IIP) for August 2026. Growth in factory output accelerated to 8.0% year-on-year, compared with 7.4% recorded in July 2026, driven by sustained capital goods production and festival pre-stocking.
SECTORAL PERFORMANCE (YoY)
- Manufacturing sector: expanded by 9.0% (constituting 77.6% weight in the IIP basket). 18 out of 23 manufacturing groups recorded positive growth, led by electrical equipment (+30.9%), other transport equipment (+25.3%), and motor vehicles and trailers (+25.2%).
- Electricity generation: surged by 12.3%, driven by higher commercial and industrial power demand.
- Water supply, sewerage & waste management: grew by 6.3%.
- Mining & quarrying: contracted by 5.6% due to heavy monsoon rains disrupting coal and mineral extraction.
USE-BASED CLASSIFICATION
- Capital goods: robust growth indicating a healthy private industrial investment cycle.
- Infrastructure and construction goods: expanded steadily, supported by central and state public capital expenditure.
- Consumer durables: posted double-digit expansion ahead of the festival season.
EXAM ANGLE
- IIP is compiled and released monthly by the National Statistics Office (NSO) under MoSPI.
- Base year: 2022-23 = 100 for the revised series (previously 2011-12 = 100).
- Sectoral weights: Manufacturing (77.63%), Mining (14.37%), Electricity (7.99%).
- Eight Core Industries: Make up 40.27% of the total IIP weight (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity).
Published on 11 Oct 2026. Source: MoSPI Quick Estimates of IIP, PIB.