The Index of Industrial Production in India grew by 6.7% in the month of September 2026 compared to the same month last year, which shows continued growth in industrial activity. The manufacturing and electricity industries supported the rise, while the mining and quarrying sector recorded a fall. Electrical equipment, rubber and plastic products, and motor vehicles were amongst the fastest-growing manufacturing industries. Let’s learn what drives India’s September 2026 IIP data, the challenges facing industrial production, and the trends responsible for the economic outlook.
Quick Answer:
India’s Index of Industrial Production (IIP) grew by 6.7% year-on-year in September 2026, down from 8.0% in August. Manufacturing grew by 7.6% and electricity and gas supply by 11.2%, while mining and quarrying declined by 6.2%. Electrical equipment, rubber and plastic products, and motor vehicles were among the fastest-growing manufacturing industries.
Key Takeaways
- Index of Industrial Production India (IIP) recorded growth of 6.7% in September 2026, compared to 8.0% growth in August 2026.
- IIP data helps to follow industrial activities, but it is only one of the indicators of India’s overall economic performance.
- Electrical equipment recorded 33.9% growth, followed by rubber and plastic products at 19.9% and motor vehicles at 19.0%.
- Manufacturing output increased by 7.6%, while electricity and gas supply grew by 11.2%. Mining and quarrying contracted by 6.2%.
- The consumer non-durables sector recorded a 1.4% growth, indicating differences in production across industrial categories.
- Capital goods production rose by 10.4%, and intermediate goods grew by 12.2%, showing stronger output in these categories.
Meaning of Index of Industrial Production (IIP)
The Index of Industrial Production (IIP) measures changes in the volume of industrial production in India over time. It tracks the production of selected industrial products and shows whether industrial activity is growing or slowing down. The Index of Industrial Production released by the National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), compiles and releases IIP data every month. The base year for measuring IIP is 2022-23. The IIP is also a useful topic for Index of Industrial Production UPSC preparation, as it helps explain how India measures changes in industrial activity and tracks growth across major sectors.
India’s IIP Growth in August 2026: A Recap
India’s IIP recorded a growth of 8.0% year-on-year in August 2026, from 6.7% in July 2026, as stated by the Ministry of Statistics and Programme Implementation (MoSPI). The sectors connected to manufacturing and electricity and gas supply highly supported the growth. However, the country’s mining and quarrying industries failed to contribute much.
| Category | Rate in % (year-on-year) |
| Mining and Quarrying | -5.6 |
| Manufacturing | 9.0 |
| Electricity and Gas supply | 12.3 |
| Water supply, sewage, and waste management | 6.3 |
| Overall IIP | 8.0 |
India’s IIP in September 2026
The IIP index grew by 6.7% year-on-year in September 2026, compared with the 8.0% growth in August 2026. According to the Ministry of Statistics and Programme Implementation (MoSPI), manufacturing grew by 7.6%, while electricity and gas supply recorded 11.2% growth. However, mining and quarrying remained weak. The monthly IIP data India reports are useful for tracking changes in production across major sectors.
| Category | Rate in % (year-on-year) |
| Mining and Quarrying | -6.2 |
| Manufacturing | 7.6 |
| Electricity and Gas supply | 11.2 |
| Water supply, sewage, and waste management | 5.8 |
| Overall IIP | 6.7 |
Which Industries are Driving India’s Industrial Growth
India’s industrial growth in September 2026 was supported by strong production in the electrical equipment, rubber and plastic products, and motor vehicles industries. According to the Ministry of Statistics and Programme Implementation (MoSPI), overall industrial production grew by 6.7% compared with September 2025. Within manufacturing, electrical equipment recorded the highest growth among the three leading industries, followed by rubber and plastic products and motor vehicles.
- Motor vehicles: Manufacturing of motor vehicles, trailers and semi-trailers grew by 19.0% year-on-year. Passenger cars, commercial vehicles and auto components contributed to this growth.
- Electrical equipment: Production grew by 33.9% in September 2026 compared with the same month last year. Products such as switchgear, circuit breakers, control panels and UPS equipment contributed to the increase.
- Rubber and plastic products: This industry recorded 19.9% growth. Products such as acrylic sheets, tyres for light motor vehicles and rubber conveyor belts supported the rise in production.
- Capital goods: This category recorded 10.4% growth. Capital goods include machinery and equipment used in production, so growth in this category reflects higher output of equipment used by businesses.
- Intermediate goods: Production increased by 12.2% in September 2026. These goods include materials and components that businesses use to make finished products.
What are the Bottlenecks Faced by India’s Industrial Sector
India’s September 2026 IIP figures mainly focus on two areas that need attention. The mining and quarrying production fell by 6.2% compared with the growth result of September 2025, while consumer non-durables grew by just 1.4%. The figures indicate that the performance varied across multiple industries, even when the IIP data do not identify the in-depth causes of the trends.
- Weak mining output: The mining and quarrying production data fell by 6.2% in September 2026 compared to the previous year’s data. This fall in the rate clashed with the overall production growth rate in other industrial sectors.
- Uneven growth across industries: While electrical equipment grew by 33.9%, the consumer non-durables recorded only 1.4% growth, which shows that the production did not increase at the same pace across all industries.
- Lower growth in consumer non-durables: Production in this category increased by just 1.4% in September. These goods include everyday items such as food products and personal care products, and their slower growth contrasts with the stronger performance of capital and intermediate goods.
- Overall slower industrial growth: Industrial production growth decreased from 8.0% in August to 6.7% in September 2026, based on the figures reported for both months. This indicates that growth is accelerating more slowly.
September IIP on India’s Economic Outlook
The September industrial data shows that the Indian factories continued to expand, but the performance differed across industries. Manufacturing and electricity recorded growth, while mining output declined. This mixed picture matters because industrial activity affects the supply of goods, business investment and production across the economy.
- Manufacturing supports industrial growth: Manufacturing output rose by 7.6% in September 2026 compared with the same month last year. Electrical equipment, rubber and plastic products, and motor vehicles recorded some of the strongest growth rates.
- Mining output falls: Mining and quarrying production declined by 6.2% year-on-year. This was a weak spot in an otherwise growing industrial sector.
- Business equipment demand remains firm: Capital goods production grew by 10.4%, while intermediate goods increased by 12.2%. These categories include machinery and the materials manufacturers use to make finished products.
Therefore, the September Index of Industrial Production (IIP) points to continued growth, although the pace was slower than the 8.0% revised growth recorded for August.
Conclusion
India’s September 2026 IIP data presents a mixed picture of industrial growth. Manufacturing continued to expand, led by electrical equipment, rubber and plastic products, and motor vehicles. However, declining mining output and slower growth in consumer non-durables show that some areas need closer attention.
For every investor, it is important to understand these trends that can help identify industries worth researching further. Investcon can be a starting point for exploring investment opportunities and making more informed decisions. Combine industrial production data with company financials, valuation, and business outlook before investing, rather than relying on a single economic indicator.
FAQs
Q: What is India’s September IIP growth rate?
Ans: India’s Index of Industrial Production (IIP) grew by a rate of 6.7% year-on-year in September 2026. This was lower than August’s revised growth rate of 8.0%, according to the Ministry of Statistics and Programme Implementation (MoSPI).
Q: Which sectors contributed most to India’s industrial growth in September 2026?
Ans: Manufacturing and electricity and gas supply have highly supported the industrial growth, recording increases of 7.6% and 11.2%, respectively. Among manufacturing industries, electrical equipment grew by 33.9%, rubber and plastic products by 19.9%, and motor vehicles by 19.0%.
Q: What is the difference between IIP and manufacturing growth?
Ans: IIP measures changes in industrial production across several sectors, including mining, manufacturing, and electricity. Manufacturing growth measures changes in production within the manufacturing sector alone. Therefore, manufacturing growth is one component of the overall IIP growth rate.
Q: Did India’s industrial production increase or decrease in September 2026?
Ans: India’s industrial production increased by 6.7% year-on-year in September 2026. However, performance varied by sector. Manufacturing and electricity grew, while mining and quarrying production declined by 6.2%.
Q: How does industrial production affect India’s GDP growth?
Ans: Industrial production reflects activity in sectors that contribute to India’s GDP, including manufacturing, mining, and electricity. Higher production can support economic output, business activity, and employment. However, IIP growth does not directly equal GDP growth, as GDP also includes agriculture and services, among other components.
Lakshmi Sundari is a finance content writer and editor with over four years of experience across financial content and content strategy. She holds an MBA in Finance and writes on investing, personal finance and fixed-income markets. Her work spans long-form articles, PR, thought leadership, newsletters and social media, along with editorial planning and content strategy. She focuses on explaining financial developments and investment concepts through research-backed, practical writing.
