India’s industrial output growth accelerated to 8% in August 2026, compared with 7.4% in July, according to government data released on September 28.
The latest reading marks the fifth monthly Index of Industrial Production (IIP) reading under the new series and represents a notable improvement from the 4.7% growth recorded in August 2025.
The stronger performance was supported by the manufacturing sector, along with electricity and gas supply. Manufacturing output grew around 9% during the month, providing a significant boost to overall industrial activity.
The August numbers indicate continued momentum across India’s industrial sector, although the performance of individual sectors remains important in assessing the broader trajectory of economic activity.
The new IIP series is being used to track changes in industrial production across key segments of the economy. The latest data provides an updated picture of factory activity, electricity generation and other components covered by the index.
The acceleration from July’s 7.4% growth also comes as policymakers and businesses monitor domestic demand, investment activity and external economic conditions.
With manufacturing accounting for the largest weight in the IIP, its performance remains a key driver of overall industrial growth. The August data therefore offers an important indication of the strength of India’s manufacturing activity during the current financial year.
