India’s industrial activity continued to expand in September 2026, although the pace of growth slowed compared with the previous month.
The Index of Industrial Production (IIP) recorded year-on-year growth of 6.7% in September, according to data released on October 28 by the Ministry of Statistics and Programme Implementation. The figure compares with August’s revised growth rate of 7.8%.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: India’s industrial production recorded 6.7% year-on-year growth in September 2026.
Location: India.
Authority/Organisation: Ministry of Statistics and Programme Implementation.
Action Taken: The ministry released the September 2026 quick estimates of the Index of Industrial Production.
Impact: Manufacturing and electricity and gas supply expanded, while mining and quarrying contracted; overall industrial growth slowed from August’s revised rate.
Manufacturing production increased by 7.6%, while electricity and gas supply recorded growth of 11.2%. Water supply, sewerage and waste management expanded by 5.8%.
Mining and quarrying was the weakest-performing major sector, registering a contraction of 6.2% compared with September 2025.
Within manufacturing, 17 of the 23 industry groups recorded positive growth. The manufacture of electrical equipment rose by 33.9%, rubber and plastics products by 19.9%, and motor vehicles, trailers and semi-trailers by 19%.
Editorial Analysis
Why This Matters
Industrial production is an important indicator of activity in manufacturing, infrastructure-related industries and other parts of the productive economy. Continued growth can indicate ongoing demand for goods and industrial services. The September figures also show that performance differed significantly between sectors. Strong growth in electrical equipment, motor vehicles and rubber and plastics products may be relevant to manufacturers, suppliers and businesses connected to these industries. Meanwhile, the contraction in mining and quarrying warrants attention because raw materials support several manufacturing and infrastructure activities. For policymakers and investors, the moderation in overall growth underlines the importance of tracking whether industrial activity strengthens or weakens in subsequent months. However, one month’s data alone does not establish a long-term economic trend.
These figures indicate that several manufacturing industries continued to record strong output, even as overall industrial growth moderated.
The IIP stood at 124.3 in September 2026, compared with 116.5 in September 2025, using the current base year of 2022–23.
The September figures are quick estimates and may be revised in subsequent releases as additional production data becomes available.
