India’s August factory growth lifts industrial output by 8 per cent
India’s industrial production grew 8 per cent from a year earlier in August, with manufacturing and electricity and gas supply advancing while mining contracted. July’s growth was revised to 7.4 per cent. The quick estimate shows how uneven the expansion was across sectors, and it may still be revised when more factory responses arrive.
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Industrial output grew 8 per cent in August
India’s national statistics authorities said the industrial production index grew 8 per cent in August 2026 from a year earlier. The index rose to 123.3 from 114.2 in August 2025. July’s growth was revised to 7.4 per cent from an initial 6.7 per cent. The August figure is a quick estimate and compares output with August 2025. It is neither a month-on-month production change nor a measure of price inflation.[1], [2]
Manufacturing and power expanded as mining shrank
Manufacturing output rose 9.0 per cent year on year in August. Electricity and gas supply increased 12.3 per cent, while water supply and waste services rose 6.3 per cent. Mining and quarrying contracted 5.6 per cent. 18 of the 23 main manufacturing groups recorded annual growth. Electrical equipment rose 30.9 per cent and motor vehicles and related production rose 25.2 per cent. The headline index therefore includes sectors moving in different directions.[1]
More responses may revise the first estimate
Under the use-based classification, capital goods output rose 16.9 per cent, intermediate goods 13.7 per cent and consumer durables 11.1 per cent. Consumer nondurables grew 2.1 per cent. The statistics office compiles the index from agencies collecting factory and establishment data. The weighted response rate for the August quick estimate was 88.0 per cent, compared with 93.4 per cent for the final July revision. More responses can change the August estimate in later releases.[1]