India's industrial output hits 8% growth in August, manufacturing up 9%

India's industrial output growth accelerated to 8% in August, up from 7.4% in July, helped by a strong performance in manufacturing and electricity and gas supply, according to government data released Monday.

The August data marks the fifth monthly Index of Industrial Production (IIP) reading under the new series. The IIP had grown 4.7% in August 2025.

"In August 2026, Index of Industrial Production recorded an 8.0 per cent year-on-year growth, supported by 9.0 per cent growth in Manufacturing sector and strong growth of 12.3 per cent in Electricity & Gas Supply sector," the National Statistics Office said.

The revised IIP growth for July stood at 7.4%, up from the earlier provisional estimate of 6.7%.

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Manufacturing Drives Growth

Manufacturing, which accounts for the largest weight in the IIP, grew 9% in August. Eighteen of the 23 industry groups recorded positive growth from a year earlier.

The biggest contributors were the manufacture of electrical equipment, which grew 30.9%, other transport equipment at 25.3%, and motor vehicles, trailers, and semi-trailers at 25.2%.

In motor vehicles, auto components, spares and accessories, passenger cars and commercial vehicles made significant contributions to growth.

Electrical equipment growth was supported by items such as electrical apparatus used for switching or protecting circuits, including switchgear, circuit breakers, switches, control and meter panels, as well as their parts. End-face connectors for optical fibres and cables, UPS, and solid-state drives also contributed.

In other transport equipment, two-wheelers, railway rolling stock and parts, maintenance or service vehicles, and parts and accessories of motorcycles, mopeds, and sidecars contributed significantly.

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Mining Contracts

Mining and quarrying output contracted 5.6% in August, compared with 15.8% growth in the same month a year earlier. Electricity and gas supply, meanwhile, recorded strong growth of 12.3%.

Overall, IIP growth during April-August stood at 6.7%, compared with 4.2% in the same period a year earlier.

The use-based classification showed growth across all major categories in August.

Primary goods grew 3.5%, while capital goods rose 16.9%. Intermediate goods grew 13.7% and infrastructure and construction goods increased 6.4%.

Consumer durables grew 11.1%, while consumer non-durables recorded a 2.1% increase.