India’s industrial production grew 8 per cent in August, accelerating from a revised 7.4 per cent in July, driven by strong manufacturing performance.

The Index of Industrial Production showed manufacturing output rising 9 per cent, while electricity and gas generation jumped 12.3 per cent. Mining output, however, contracted 5.6 per cent during the month.

Eighteen of the 23 manufacturing groups posted growth, with electrical equipment surging 30.9 per cent and motor vehicles and trailers up 25.2 per cent. The broad-based expansion signals healthy domestic demand across sectors.

Economists said the numbers point to a resilient industrial sector heading into the festive season. Strong manufacturing typically translates into better employment and higher tax collections for the government.

However, Union Bank of India Research cautioned that growth may remain in single digits in the months ahead. A weak monsoon, rising input costs and global supply chain risks could weigh on output through the winter. Officials said the data would support the central bank’s view that growth remains on a firm footing.