India IIP September 2026: Growth Slows to 6.7%; Sector-Wise Breakdown
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India’s industrial production grew 6.7% year on year in September 2026, slowing from 7.8% in August, according to the latest revised figures. Manufacturing and utilities continued to expand, while mining contracted.
The September data, released on October 28, also showed a gap between investment-related and consumer-goods production. Capital goods and intermediate goods recorded double-digit growth, while consumer non-durables grew modestly.
For April–September FY27, overall industrial production increased 6.8%, compared with 4.4% in the corresponding period a year earlier. September therefore showed slower annual growth than August within a stronger first-half performance.
India IIP September 2026: Key Numbers
The Index of Industrial Production, or IIP, tracks changes in the volume of industrial output. The current series uses 2022–23 as its base year.
The table presents two views of production. The sector classification identifies the industries producing the output. The use-based classification groups goods according to their economic use, such as machinery, construction materials or consumer products.
All figures below are year-on-year growth rates. The April–September column compares the first six months of FY27 with the same period of FY26.
| Indicator | September 2025 | August 2026, revised | September 2026, quick estimate | April–September FY27 |
|---|---|---|---|---|
| Overall IIP | 6.1% | 7.8% | 6.7% | 6.8% |
| Sector classification | ||||
| Mining & quarrying | 15.7% | −4.6% | −6.2% | −2.4% |
| Manufacturing | 5.5% | 8.6% | 7.6% | 7.5% |
| Electricity & gas supply | 3.3% | 12.3% | 11.2% | 9.7% |
| Water supply, sewerage & waste management | 6.2% | 6.3% | 5.8% | 6.3% |
| Use-based classification | ||||
| Primary goods | 6.6% | 4.2% | 4.0% | 3.5% |
| Capital goods | 13.2% | 15.9% | 10.4% | 15.1% |
| Intermediate goods | 6.4% | 14.2% | 12.2% | 10.8% |
| Infrastructure/construction goods | 9.8% | 8.0% | 7.2% | 7.4% |
| Consumer durables | 4.6% | 10.5% | 6.0% | 8.7% |
| Consumer non-durables | −0.5% | −1.1% | 1.4% | 0.8% |
Scroll horizontally to view the full table →
Source: MoSPI, September 2026 IIP release, Statements I and III. September figures are quick estimates and may be revised. The two classifications describe the same overall production basket from different perspectives.
August’s initial growth estimate was 8.0%, subsequently revised to 7.8%. Against the revised figure, September’s annual growth rate eased by 1.1 percentage points.
The comparison is between two annual growth rates: September output against September last year, and August output against August last year.
Manufacturing, Mining and Utilities: What Changed?
Manufacturing remained the main support
Manufacturing carries roughly three-quarters of the weight in the IIP basket. Its performance therefore has a much larger influence on the headline than that of a smaller sector.
Its September expansion helped offset the contraction in mining. However, growth moderated from August, contributing to the softer overall reading.
The manufacturing result also combines very different industries. Vehicles, machinery, pharmaceuticals, clothing and processed food can follow different production cycles, even within the same month.
Mining remained below last year’s level
Mining and quarrying contracted for a second consecutive month in the comparison shown above.
The previous-year column provides useful context: mining had expanded sharply in September 2025. That creates a demanding comparison base for September 2026.
A base effect helps explain the annual comparison, while the negative reading still records lower production than a year earlier. Establishing the operational causes would require evidence on individual minerals, production sites and supply conditions.
Utilities continued to expand
Electricity and gas supply recorded double-digit growth, while water supply, sewerage and waste management also expanded.
These activities serve households, businesses and other users. Their production figures provide a broad view of utility activity, with the combined sector totals bringing together components that can move differently.
For a narrower view of basic industrial inputs, Finnovate’s explanation of the Core Industries Index and its revised sector weights shows how that measure differs from the broader IIP.
Capital Goods and Consumer Goods: The Use-Based Breakdown
The use-based categories help explain what kind of production is expanding.
Capital goods and intermediate goods
Capital goods include machinery and equipment used in production. Intermediate goods are inputs that undergo further processing or become part of another product.
Both categories recorded double-digit annual growth in September, although their growth rates eased from August.
Their strength points to expanding production within the investment and industrial supply chain. Assessing the wider investment cycle also requires information on equipment imports, project execution, capacity utilisation and actual capital spending.
Infrastructure and construction goods
This category captures goods used in construction and infrastructure activity.
Production continued to grow, though at a slower annual rate than in August. These goods can serve housing, commercial projects and public infrastructure, so the category draws demand from several parts of the economy.
The relationship with construction activity also involves timing. Materials may be produced and stocked before they are used on a project.
Consumer durables and non-durables
Consumer durables are products used over a longer period, such as household appliances. Non-durables generally have a shorter useful life and include many everyday consumption items.
Durables continued to expand, but their annual growth slowed. Non-durables returned to positive growth after August’s contraction.
Production is one part of the consumption picture. Retail sales, inventories, imports and exports also influence how closely factory output tracks household purchases.
Which Manufacturing Industries Supported Growth?
Seventeen of the 23 manufacturing industry groups recorded positive annual growth.
The official release identified three leading positive contributors:
- Motor vehicles, trailers and semi-trailers: 19.0% growth.
- Electrical equipment: 33.9% growth.
- Rubber and plastics products: 19.9% growth.
Among weaker industries, pharmaceutical production contracted 8.9%, wearing apparel fell 5.2%, and chemicals declined 0.6%.
An industry’s contribution depends on both its production change and its weight in the index. A high growth rate in a small industry can have less effect on the overall result than moderate growth in a larger one.
This matters when interpreting the manufacturing headline. Aggregate growth can remain positive while individual industries face weaker production.
How Did Industrial Production Perform in the First Half of FY27?
The cumulative column gives a broader perspective than September alone.
Across April–September, manufacturing and utilities expanded, while mining remained below the corresponding period last year.
The use-based figures show a stronger increase in capital goods and intermediate goods than in everyday consumer-goods production. Consumer durables also performed better than non-durables over the six-month period.
The first-half comparison helps separate a monthly change from a more persistent pattern. Production schedules, holidays, inventory adjustments and the previous year’s base can all affect a single month.
Cumulative figures spread those influences across a longer period, although differences between categories still need to be examined.
What the September IIP Data Shows
September’s release presents an uneven industrial picture.
Manufacturing and utilities supported overall expansion. Mining remained a drag. Investment-related production showed greater strength than consumer non-durables, while the headline annual growth rate moderated from August.
For investors, the next step is to connect production trends with company results. Higher industry output can support sales opportunities, but profitability also depends on prices, input costs, operating efficiency and competition.
A business can sell more while earning less per unit. Another can improve profits through cost savings even when its industry grows slowly.
IIP provides the production backdrop for that assessment. Company earnings, cash flows and valuations complete the investment picture.
FAQs
1. What was India’s IIP growth in September 2026?
India’s IIP grew 6.7% year on year in September 2026, based on the quick estimate released on October 28. This measures industrial output against September 2025.
2. What was the revised IIP growth rate for August 2026?
August’s annual IIP growth was revised from 8.0% to 7.8%. The revised figure is the appropriate comparison for September’s release.
3. What is the difference between sector-wise and use-based IIP data?
Sector-wise data groups production by industry, such as manufacturing or mining. Use-based data groups goods by their role in the economy, such as capital goods, intermediate goods or consumer durables. They are alternative classifications of the overall production basket.
4. What is the current base year of India’s IIP?
The current IIP series uses 2022–23=100. Its coverage includes mining and quarrying, manufacturing, electricity and gas supply, and water supply, sewerage and waste management. Comparisons should use a consistent series and the latest available revisions.
Sources
Disclaimer: This article is for information and education only and is not investment advice. September 2026 IIP figures are quick estimates and may be revised. Economic indicators should be assessed alongside other information before making investment decisions.
