India’s Index of Industrial Production grew 8.0% year-on-year in August 2026, quick estimates released by the Ministry of Statistics and Programme Implementation showed on September 28. That was up from a revised 7.4% in July. The IIP index level stood at 123.3, compared with 114.2 a year earlier.

Manufacturing, the largest IIP component, grew 9.0% — its third straight month of growth above 8%. Eighteen of 23 industry groups were positive. The top contributors were electrical equipment at 30.9%, other transport equipment at 25.3%, and motor vehicles, trailers and semi-trailers at 25.2%.

Electricity and gas supply rose 12.3%, while water supply, sewerage and waste management grew 6.3%. Mining and quarrying contracted 5.6%, against 15.8% growth a year ago. By use-based classification, capital goods rose 16.9%, intermediate goods 13.7%, consumer durables 11.1%, and infrastructure and construction goods 6.4%.

Bank of Baroda chief economist Madan Sabnavis said manufacturing “did very well,” driven by motor vehicles, machinery, electronics, textiles, beverages, rubber and non-metallic products, and added that the momentum should support second-quarter GDP. MoSPI has adopted the Output Producer Price Index as the deflator for selected items instead of the Wholesale Price Index, superseding earlier series for 234 of 463 item groups.