Industrial Output Up 6.7% in September, 17 Manufacturing Groups Grow

India's industrial output grew 6.7 per cent year-on-year in September 2026, according to the latest official figures released on Wednesday by the Ministry of Statistics. The headline growth rate reflects gains across manufacturing and power generation.

Manufacturing output rose 7.6 per cent, and electricity and gas supply grew 11.2 per cent. These two sectors played a major role in lifting the overall reading.

The flash estimate put the Index of Industrial Production at 124.3 for September 2026, up from 116.5 a year earlier. Growth in August 2026 had stood at 8 per cent, so the pace of expansion eased slightly in September.

The September sectoral indices were 90.4 for mining and quarrying, 128.0 for manufacturing, 128.6 for electricity and gas supply, and 146.4 for water supply, sewerage and waste management.

Among the 23 manufacturing industry groups, 17 registered positive growth. The motor vehicles, trailers and semi-trailers segment was among the top performers, expanding 19 per cent. Electrical equipment rose 33.9 per cent, while rubber and plastic products climbed 19.9 per cent.

Auto components, spares and accessories, passenger vehicles and commercial vehicles all contributed to the strength in motor vehicles. The electrical equipment category saw higher demand for switchgear, circuit breakers, control and meter panels, UPS systems and optical fibre connectors.

By broad use category, primary goods stood at 111.6, capital goods at 153.4, intermediate goods at 131.7, and infrastructure and construction goods at 133.0. Consumer durables recorded 133.1, and consumer non-durables 111.8.

Intermediate goods, primary goods and capital goods accounted for the largest share of industrial output, which analysts view as a positive signal for investment and production.

The Ministry of Statistics has also decided to use the Output Producer Price Index (PPI) instead of the Wholesale Price Index (WPI) as the deflator for certain value-based product groups. The shift will affect 234 of the 463 product groups in the IIP basket, which together carry a weight of around 36 per cent.

The ministry had introduced a new IIP series with 2022-23 as the base year on June 1, 2026. The September data suggest that India's manufacturing and industrial base remains on a firm footing amid global uncertainties, playing a key role in sustaining economic growth.