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India’s factory output grows 8% in August, manufacturing 9%

India’s industrial production grew eight per cent in August 2026, the fastest pace in five months, driven by strong manufacturing and electricity output.

Data released on Monday showed manufacturing, which carries the biggest weight in the index, rose nine per cent, while electricity and gas generation climbed 12.3 per cent.

Mining output, however, contracted 5.6 per cent during the month, dragging on the headline number.

Among use-based categories, electrical equipment surged 30.9 per cent, while capital goods and infrastructure goods also posted healthy gains, signalling investment demand.

Economists said the numbers point to resilient domestic demand and the benefits of government capital spending, even as global trade remains uncertain. The August reading compares with 7.4 per cent growth in July. For the April-August period, industrial growth is tracking well above last year’s pace. Analysts will now watch the September numbers for signs that the momentum is holding through the festive season.

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