India’s industrial output, measured by the Index of Industrial Production (IIP), grew 6.7% year-on-year in September 2026, slowing from August and missing a Reuters poll forecast of 7.3%. The Ministry of Statistics and Programme Implementation (MoSPI) released the quick estimates on 28 October 2026.
The IIP index stood at 124.3 in September 2026 against 116.5 a year earlier, on the new 2022-23 base series launched on 1 June 2026. Manufacturing and electricity led the growth while mining contracted.
How Did Manufacturing, Mining and Electricity Perform in September 2026?
Manufacturing grew 7.6% year-on-year with an index of 128.0, and 17 of 23 NIC two-digit industry groups recorded growth. Electricity and gas supply rose 11.2% to an index of 128.6. Mining and quarrying fell 6.2% year-on-year, according to Reuters as carried by Business Recorder, with an index of 90.4.
Which Manufacturing Groups Drove the Growth?
Electrical equipment grew 33.9%, rubber and plastics products 19.9%, and motor vehicles, trailers and semi-trailers 19.0%. By use-based category, capital goods rose 10.4%, consumer durables 6.0% and consumer non-durables 1.4%. Intermediate, primary and capital goods were the top three contributors to overall IIP growth.
What Does the Six-Month Trend Show?
Business Recorder reports that industrial output grew 6.8% in April-September, compared with 4.4% in the same period a year earlier. August’s growth was reported as 8.0% in the quick estimate and later revised, with sources differing on the revised figure, so this article does not rely on a specific August number.
Market and Trade Reaction
No analyst commentary beyond the Reuters poll comparison was found in the coverage reviewed, and no immediate market reaction to the data was reported. Sensex and Nifty were trading lower in early trade on 28 October, but that move was not attributed to the IIP release.
What Happens Next?
MoSPI said it is moving to output Producer Price Index (PPI) deflators for item groups priced in value terms, which affects 234 of 463 item groups, about 36.02% of index weight. October IIP quick estimates will follow next month, and economists will watch whether the slowdown in mining and capital goods persists.
Frequently Asked Questions
What was India’s IIP growth in September 2026?
Industrial output grew 6.7% year-on-year, below the 7.3% expected in a Reuters poll.
Which sector grew fastest?
Electricity and gas supply grew the fastest at 11.2%, followed by manufacturing at 7.6%.
Which sector contracted?
Mining and quarrying fell 6.2% year-on-year, according to Reuters.
Sources: MoSPI via PIB (28 Oct 2026), IANS via SocialNews.XYZ (28 Oct 2026), Reuters via Business Recorder (28 Oct 2026).
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