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The industrial production grew 8% year-on-year in August, up from a revised 7.4% in July, driven by manufacturing and electricity and gas supply, according to government data released on Monday (September 28). Industrial production had expanded 4.7% in August 2025.
Data released by the Ministry of Statistics and Programme Implementation showed manufacturing output rose 9% in August, while electricity and gas supply expanded 12.3%. Mining and quarrying contracted 5.6%, compared with growth of 15.8% a year earlier. Water supply, sewerage and waste management grew 6.3%.
The August figures are the fifth monthly release under the new Index of Industrial Production (IIP) series, which uses 2022-23 as its base year. The overall index stood at 123.3, against 114.2 a year earlier, the ministry said.
Manufacturing accounts for 76.1% of the new index, compared with 11.1% for mining and quarrying and 10.9% for electricity and gas supply, making it the largest industrial component.
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July growth revised upwards
July’s industrial growth was revised upwards from the provisional estimate of 6.7% to 7.4%, following updated production data. Manufacturing growth for July stood at 8.2%. The ministry said the sector had recorded growth of 8% or more for three consecutive months.
For April-August 2026-27, industrial output increased 6.7%, compared with 4.2% in the corresponding period a year earlier. Manufacturing grew 7.4% over the five months, while electricity and gas supply expanded 9.5%. Mining and quarrying declined 2%, according to the ministry’s sectoral data.
Vehicles, electrical equipment lead
Within manufacturing, 18 of the 23 industry groups recorded growth in August. Motor vehicles, trailers and semi-trailers, electrical equipment, and other transport equipment were the three largest positive contributors, the release said.
Output of motor vehicles, trailers and semi-trailers rose 25.2%, with auto components, spares and accessories, passenger cars and commercial vehicles making significant contributions.
Electrical equipment production increased 30.9%. The ministry identified switching and circuit-protection equipment, optical fibre and cable connectors, and UPS and solid-state drives among the key contributors.
Other transport equipment grew 25.3%, supported by two-wheelers, railway rolling stock and related parts, maintenance or service vehicles, and motorcycle accessories.
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Capital goods rise 16.9%
The use-based classification showed capital goods production expanding 16.9%, the fastest among the six categories. Intermediate goods output grew 13.7%, while consumer durables rose 11.1%.
Infrastructure and construction goods increased 6.4%, primary goods grew 3.5%, and consumer non-durables recorded a more modest 2.1% expansion, according to the release’s key highlights.
The ministry identified intermediate goods, capital goods and consumer durables as the three largest positive contributors to overall industrial growth under the use-based classification.
The figures showed a marked difference between consumer durables and non-durables, with growth in the former exceeding the latter by nine percentage points. Manufacturing’s expansion also contrasted with the contraction in mining, indicating uneven performance across industrial sectors.
The August numbers are quick estimates and remain subject to revision as additional data become available. The ministry said the estimates were compiled at a weighted response rate of 88%, while the revised July figures reflected a response rate of 93.4%.
Industrial production data for September are scheduled to be released on October 28.
TOPICSECONOMYIIP GrowthIndex Of Industrial ProductionManufacturingThis article was first uploaded on September twenty-eight, twenty twenty-six, at ten minutes past five in the evening. © IE Online Media Services (P) Ltd