India's Index of Industrial Production increased 6.7% year on year in September 2026, supported by a 7.6% rise in manufacturing and an 11.2% increase in electricity and gas supply. The general index stood at 124.3, compared with 116.5 in September 2025, according to quick estimates released by MoSPI on 28 October 2026.
September's headline growth rate was below the 8.0% quick estimate reported for August. MoSPI said the September figures are provisional and will be revised under the index's standard revision policy as source agencies submit updated production data.
The September release uses the 2022–23 base year and covers mining and quarrying, manufacturing, electricity and gas supply, and water supply, sewerage and waste management. Sector indices are combined using their assigned weights to produce the general index.
Manufacturing provides the main support
Manufacturing, which carries the largest weight in the index, recorded an index level of 128.0 and 7.6% annual growth. Seventeen of the 23 manufacturing industry groups covered at the two-digit classification level posted growth from a year earlier.
Electrical equipment rose 33.9%, while motor vehicles, trailers and semi-trailers increased 19.0%. Rubber and plastics products grew 19.9%. MoSPI identified these three groups as the leading positive contributors within manufacturing.
Within motor vehicles, the release cited auto components, passenger cars and commercial vehicles as significant contributors. Within electrical equipment, it pointed to switching and circuit-protection apparatus, UPS and solid-state drives, and connectors for optical fibres and cables.
Electricity rises while mining contracts
Electricity and gas supply recorded an index level of 128.6 and expanded 11.2% year on year. Water supply, sewerage and waste management rose 5.8%, with its index at 146.4.
Mining and quarrying moved in the opposite direction, declining 6.2% from September 2025 and recording an index level of 90.4. The different sector movements together produced the 6.7% increase in the overall index.
Capital and intermediate goods show growth
Under the use-based classification, intermediate goods increased 12.2% and capital goods rose 10.4%. Infrastructure and construction goods grew 7.2%, consumer durables increased 6.0%, primary goods rose 4.0% and consumer non-durables advanced 1.4%.
For April to September 2026, the overall index was 6.8% higher than in the corresponding period a year earlier. The release said September's quick estimates were compiled at an 86.5% weighted response rate.
MoSPI also incorporated final revisions to the August indices using updated production data. The next scheduled release, covering October 2026, is due on 30 November 2026.
Key numbers
- Overall IIP growth: 6.7%
- Manufacturing growth: 7.6%
- Electricity and gas growth: 11.2%
- Mining and quarrying growth: -6.2%
- September general index: 124.3
What boards and CFOs should note
- How does the divergence between manufacturing growth and the mining contraction affect input and demand assumptions?
- Which capital spending plans are consistent with 10.4% growth in capital goods and 12.2% growth in intermediate goods?
- How should provisional data and the stated response rate be reflected in near-term forecasts?
Source: PIB, 28 October 2026. This is a summary of an official release, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
