India’s Industrial Output Expands by 6.7% in September, Thanks to Manufacturing and Electricity Production
India’s industrial production growth witnessed an expansion rate of 6.7% in September 2026 as compared to the previous year owing to strong manufacturing performance in conjunction with electricity and gas production, as per the figures made public by the MoSPI. Nevertheless, the growth rate was slower than the revised figure of 7.8% in August showing some deceleration in industrial production.
The Index of Industrial Production (IIP), an indicator that measures the change in industrial output, reached 124.3 in September as compared to 116.5 during the corresponding period of last year. The manufacturing sector reported growth of 7.6%, while electricity and gas supply grew by 11.2%. On the other hand, water supply, sewerage and waste management sector witnessed growth of 5.8%. However, mining and quarrying activities contracted by 6.2%.
Under the manufacturing sector, electrical equipment sector was among the top sectors which showed growth of 33.9%. Rubber and plastic products segment posted growth of 19.9%, while motor vehicles, trailers and semi-trailers posted growth of 19%. This growth in automobile manufacturing was driven by production of passenger cars, commercial vehicles and auto components. Out of total 23 manufacturing industries, 17 showed growth in September.
Under the use-based approach, production of intermediate goods rose by 12.2%, while that of capital goods increased by 10.4%. Production of infrastructure and construction goods rose by 7.2%, whereas that of consumer durables registered a rise of 6%. On the other hand, consumer non-durables moved into the positive zone by increasing by 1.4%.
Even with the slowdown in September, the Indian industrial sector managed to retain its positive streak through the first half of the fiscal year 2026-27. The industrial output increased by 6.8% from April to September, compared with 4.4% growth in the same period last year. Production of manufacturing sector witnessed a rise of 7.5% in six months.
While the latest figures show that momentum was maintained in the industrial sectors, declining production of mining products and sluggish growth in various sectors are the areas where caution is required. Keeping up manufacturing activity, investments and electricity generation would be vital for industrial growth in the coming months.
