India's Industrial Production Growth Accelerates to 8.0% in August 2026
India's Index of Industrial Production (IIP) recorded 8.0% year-on-year growth in August 2026, showing acceleration from the 6.7% growth recorded in July 2026 (revised estimate). The Quick Estimate of IIP stood at 123.3 in August 2026 compared to 114.2 in August 2025, indicating sustained industrial expansion.
Sectoral Performance Shows Mixed Trends
The manufacturing sector, which carries the highest weight of 76.062%, grew by 9.0% year-on-year, maintaining strong momentum with growth of 8% or more for three consecutive months. The electricity and gas supply sector showed exceptional performance with 12.3% growth, while water supply, sewerage and waste management grew by 6.3%. However, the mining and quarrying sector contracted by 5.6% during the month.
Manufacturing Sector Details Show Broad-Based Growth
Within the manufacturing sector, 18 out of 23 industry groups at NIC 2-digit level recorded positive growth in August 2026. The top performers were manufacture of electrical equipment (30.9% growth), manufacture of other transport equipment (25.3% growth), and manufacture of motor vehicles, trailers and semi-trailers (25.2% growth). Significant contributions came from auto components, passenger cars, commercial vehicles, electrical apparatus for switching circuits, end-face connectors for optical fibres, UPS and solid-state drives, two-wheelers, railway rolling stock parts, and motorcycle parts.
Other notable manufacturing performers included manufacture of rubber and plastics products (21.4%), manufacture of computer, electronic and optical products (19.3%), manufacture of beverages (18.3%), and manufacture of fabricated metal products (16.9%). Only five industries showed negative growth, with manufacture of tobacco products declining 8.0% and manufacture of wearing apparel declining 7.4%.
Use-Based Classification Reveals Investment-Led Growth
According to use-based classification, capital goods showed the strongest growth at 16.9%, followed by intermediate goods at 13.7%. Consumer durables grew by 11.1%, while infrastructure/construction goods grew by 6.4%. Primary goods grew modestly at 3.5%, and consumer non-durables showed the slowest growth at 2.1%. The indices stood at 140.7 for capital goods, 131.8 for intermediate goods, 132.5 for infrastructure/construction goods, 129.4 for consumer durables, and 114.3 for consumer non-durables.
Cumulative Performance and Data Quality
For the April-August 2026 period, cumulative IIP growth stood at 6.7% compared to the same period previous year. The manufacturing sector grew 7.4% during this period, while electricity and gas supply grew 9.5%. Mining and quarrying contracted 2.0% cumulatively. The Quick Estimates for August 2026 were compiled at a weighted response rate of 88.0%, while the final revision for July 2026 had a response rate of 93.4%.