India’s industrial production growth moderated to 6.7 per cent in September from 8 per cent in August, with falling mining output offsetting gains in manufacturing and electricity generation. However, several manufacturing segments, including electrical equipment, rubber and plastics, and motor vehicles, posted robust growth during the month. The latest figures released by the Ministry of Statistics and Programme Implementation on Wednesday showed that the Index of Industrial Production (IIP) reached 124.3 in September, up from 116.5 in the same month last year.
Mining and quarrying remained a key area of weakness in September, with output declining 6.2 per cent year-on-year. The contraction was steeper than the 4.6 per cent fall recorded in August, putting pressure on the overall industrial growth rate.
The decline in mining activity came even as other major sectors continued to expand. Manufacturing and electricity and gas supply supported industrial production, although their growth rates also showed some moderation compared with the previous month.
Manufacturing, which accounts for the largest share of the IIP at 76.062 per cent, grew 7.6 per cent in September, compared with 8.6 per cent in August.
Electricity and gas supply recorded growth of 11.2 per cent during the month. Meanwhile, water supply, sewerage and waste management output increased 5.8 per cent.
Electrical Equipment, Rubber And Plastics Lead Manufacturing Growth
Manufacturing performance remained encouraging, with 17 of the 23 industry groups registering year-on-year growth in September.
Electrical equipment manufacturing emerged as a standout performer, recording a sharp 33.9 per cent increase in output. Rubber and plastics products followed with growth of 19.9 per cent, while manufacturing of motor vehicles, trailers and semi-trailers expanded 19 per cent.
Within the automobile segment, production of auto components, passenger cars and commercial vehicles contributed significantly to the increase in output.
The broad-based expansion across several manufacturing categories helped cushion the impact of the mining downturn on overall industrial activity.
The use-based classification of industrial production also pointed to strength in goods used for production and investment.
Intermediate goods output rose 12.2 per cent year-on-year in September, while capital goods production increased 10.4 per cent. These categories, along with primary goods, were the three largest positive contributors to IIP growth under the use-based classification.
Infrastructure and construction goods recorded growth of 7.2 per cent, while consumer durables output increased 6 per cent.
Consumer non-durables, however, reported a comparatively modest expansion of 1.4 per cent, indicating weaker growth in this segment than in several other categories.
Industrial Production Grows 6.8% In April-September
Despite the moderation in September, India’s industrial output maintained a stronger pace during the first half of the current financial year.
Cumulative industrial production growth stood at 6.8 per cent during April-September of the financial year 2026-27. This was higher than the 4.4 per cent growth recorded during the corresponding period of the previous financial year.
The figures suggest that industrial activity has sustained momentum over the six-month period, even as the latest monthly data point to uneven performance across sectors.
