Apparel output shrinks 7.4% in August while textiles grow

India’s industrial output grew a strong 8 per cent in August 2026, but the apparel sector kept sliding. The gap between textiles and garment manufacturing widened, according to official data. The Index of Industrial Production showed growth of 8 per cent in August, up from 6.7 per cent in July. Within manufacturing, 18 of 23 industry groups recorded positive growth, the statistics ministry said. Electrical equipment, other transport equipment and motor vehicles each grew more than 25 per cent. Wearing apparel, a bellwether of India’s exports, contracted 7.4 per cent in August. Its cumulative decline for April to August stands at 5.6 per cent. The upstream textile industry, by contrast, has logged firm upward momentum. Chief economist Madan Sabnavis of Bank of Baroda said apparel was hurt by weak exports, along with chemicals and pharmaceuticals. Mining de-grew, though minerals including rare earths rose 5 per cent. ICRA principal economist Rahul Agrawal noted that IIP growth averaged 7.7 per cent in July and August, up from 6.2 per cent in the first quarter of FY2027. He said strong volume growth could partly offset margin pressure from rising global commodity prices in the second quarter’s GDP numbers.
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