Industrial production expands at 6.7%, mining output contracts

Government released Quick Estimate of Index of Industrial Production (IIP) today, highlighting that IIP growth rate for the month of September 2026 is 6.7 percent compared to 8.0 percent (Quick Estimate) in the month of August 2026. The growth rates of the sectors, Mining & Quarrying, Manufacturing, Electricity & Gas Supply and Water Supply, Sewerage & Waste Management are (-) 6.2 percent, 7.6 percent, 11.2 percent and 5.8 percent respectively. The Quick Estimate of IIP stands at 124.3 against 116.5 in September 2025.

Within the Manufacturing sector, 17 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in September 2026 over September 2025. The top three positive contributors for the month of September 2026 are – “Manufacture of motor vehicles, trailers and semi-trailers” (19.0 %), “Manufacture of electrical equipment” (33.9 %), and “Manufacture of rubber and plastics products” (19.9 %).

As per the Use-Based Classification, the indices stand at 111.6 for Primary Goods, 153.4 for Capital Goods, 131.7 for Intermediate Goods and 133.0 for Infrastructure/ Construction Goods for the month of September 2026. Further, the indices for Consumer durables and Consumer non-durables stand at 133.1 and 111.8 respectively.

The corresponding growth rates of IIP as per Use-Based Classification in September 2026 over September 2025 are 4.0 percent in Primary Goods, 10.4 percent in Capital Goods, 12.2 percent in Intermediate Goods, 7.2 percent in Infrastructure/ Construction Goods, 6.0 percent in Consumer durables and 1.4 percent in Consumer non-durables. Based on Use-Based Classification, top three positive contributors to the growth of IIP for the month of September 2026 are Intermediate Goods, Primary Goods and Capital Goods.

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