India’s industrial output grew 8.0% year-on-year in August 2026, government data released on September 28 showed. Economists polled by Reuters had expected growth of 6.5%.

That is faster than the revised 7.4% growth recorded in July. Manufacturing led the way with a 9.0% rise, while electricity and gas supply grew 12.3%. Mining and quarrying contracted 5.6%. The index tracks production across mining, manufacturing and electricity.

Of the 23 manufacturing industry groups tracked, 18 posted growth. Electrical equipment surged 30.9%, other transport equipment rose 25.3%, and motor vehicles grew 25.2%. This is the third straight month of manufacturing growth above 8%.

Bank of Baroda chief economist Madan Sabnavis attributed the strength to motor vehicles, machinery, electronics, textiles, beverages, rubber and non-metallic products. Capital goods output jumped 16.9%, a sign of rising investment demand.

The strong output also supports tax collections and jobs. The strong factory print keeps India’s growth story on track, but the fall in mining bears watching as policymakers push for sustained momentum.