India’s industrial production grew 8.0% year-on-year in August, official data released on September 28 showed, signalling strong momentum in the economy’s factory sector.

The Index of Industrial Production rose to 123.3 from 114.2 a year earlier. July’s figure was revised up to 7.4% from 6.7%, confirming the uptrend. Manufacturing, the largest component of the index, grew 9% — its third straight month at or above 8%.

Electricity and gas generation surged 12.3%, while water supply grew 6.3%. Mining was the weak spot, contracting 5.6%. Of the 23 industry groups, 18 posted positive growth, led by electrical equipment at 30.9%, other transport equipment at 25.3% and motor vehicles at 25.2%.

By use-based classification, capital goods jumped 16.9%, intermediate goods 13.7% and consumer durables 11.1% — a broad-based expansion spanning investment and consumption. Assam Chief Minister Himanta Biswa Sarma shared the figures on X on September 30, calling them proof of India’s manufacturing push.

Economists say the data strengthens the case for the RBI to hold rates at its October 5-7 policy meeting, with growth running hot.