India’s industrial production growth eased to 6.7% in September 2026 from 8% in August, as manufacturing slowed while electricity and gas supply recorded strong growth.

India’s Industrial Production Growth Slows to 6.7% in September 2026

India’s industrial production growth moderated to 6.7% year-on-year in September 2026, down from 8% in August, according to official Index of Industrial Production (IIP) data. The slowdown was primarily associated with weaker growth in manufacturing and sluggish mining activity.

Despite the moderation, the electricity and gas supply sector recorded strong growth, helping support overall industrial output. The latest figures are based on the revised IIP series, which uses 2022–23 as its base year.

Industrial Production Growth Declines from August

The Index of Industrial Production registered growth of 6.7% in September, compared with 8% in August under the revised statistical series.

The latest figures indicate that industrial activity continued to expand, although at a slower pace than in the previous month.

The IIP is an important economic indicator that tracks changes in the volume of industrial production across key sectors. Its performance provides insights into manufacturing activity, mining output and electricity generation, helping policymakers and businesses assess broader industrial trends.

The September data suggests that growth remained positive, but variations across sectors affected the overall pace of expansion.

Manufacturing Growth Slows to 7.6%

The manufacturing sector continued to contribute to industrial growth in September, although its expansion moderated.

Manufacturing output grew by 7.6% year-on-year in September, compared with 8.6% in August. The decline in the growth rate was one of the factors behind the moderation in overall industrial production.

Manufacturing is a major component of the IIP and covers a wide range of industrial activities, from consumer goods and machinery to intermediate products used by other industries.

The slower growth indicates that manufacturing activity expanded at a more measured pace during September. However, the sector continued to record positive year-on-year growth.

Electricity and Gas Supply Records Strong Growth

The electricity and gas supply sector delivered a stronger performance in September, helping support the overall industrial production figure.

According to the official release, electricity and gas supply recorded growth of 11.2% during the month.

The sector’s performance contrasted with the moderation in manufacturing and the sluggish activity reported in mining.

Electricity supply is an important component of industrial activity, as it supports production processes across manufacturing facilities and other industrial establishments. The September growth figure highlights the sector’s contribution to the overall IIP expansion.

Mining Activity Weighs on Industrial Output

Sluggish mining activity was another factor contributing to the slower pace of industrial production growth in September.

Mining is one of the three major sectors covered by the IIP, alongside manufacturing and electricity. Changes in mining output can influence the overall index because the sector supplies essential raw materials to several industries.

Although the supplied data does not specify the exact mining growth rate for September, it identifies weaker mining performance as a factor behind the moderation in industrial output.

The combined impact of slower manufacturing growth and sluggish mining activity contributed to the decline in the overall IIP growth rate from August.

Revised IIP Series Uses 2022–23 as Base Year

The September industrial production figures were calculated using the revised IIP series, which came into effect on April 1. Under the updated series, 2022–23 is the base year used for measuring changes in industrial production.

A base year provides the reference point against which production levels in other periods are compared. Updating it allows the index to reflect a more recent industrial structure and changing economic conditions.

The revised series provides the statistical framework for tracking industrial performance across manufacturing, mining and electricity-related activities.

What the September IIP Data Indicates

The September figures show that India’s industrial sector continued to expand, although overall growth slowed compared with August.

Manufacturing growth moderated from 8.6% to 7.6%, while sluggish mining activity also weighed on the index. Meanwhile, electricity and gas supply recorded a stronger 11.2% increase.

These contrasting sectoral performances underline the importance of examining individual industries alongside the headline IIP figure. Future industrial growth will depend partly on how manufacturing demand, mining activity and electricity output develop in subsequent months.

Conclusion

India’s industrial production growth slowed to 6.7% in September 2026 from 8% in August, reflecting weaker momentum in manufacturing and sluggish mining activity. Electricity and gas supply remained a stronger contributor, growing by 11.2%. The latest figures, calculated under the revised IIP series with 2022–23 as the base year, provide an important snapshot of India’s industrial performance.