India’s industrial growth slows to 6.7% in September

India’s industrial production rose 6.7 per cent year-on-year in September 2026, driven by strong performance in manufacturing and electricity generation, according to quick estimates released on Wednesday.However, growth eased from August’s revised rate of 7.8 per cent, compared with the earlier estimate of 8 per cent. The Index of Industrial Production (IIP), based on 2022–23, stood at 124.3 in September, up from 116.5 a year earlier.
Manufacturing, which accounts for 76.06 per cent of the index, recorded growth of 7.6 per cent. Electricity and gas supply expanded by 11.2 per cent, while water supply, sewerage and waste management grew 5.8 per cent. Mining and quarrying, however, contracted by 6.2 per cent.Within manufacturing, 17 of the 23 industry groups registered growth. Motor vehicles, trailers and semi-trailers, electrical equipment, and rubber and plastics products were the leading positive contributors, recording growth of 19 per cent, 33.9 per cent and 19.9 per cent, respectively.
Growth in motor vehicle manufacturing was supported by auto components, passenger cars and commercial vehicles. Electrical equipment production benefited from higher output of switchgear, circuit breakers, control panels and optical fibre connectors. Plastic sheets, light motor vehicle tyres and rubber conveyor products also supported growth in the rubber and plastics segment.Other industries reporting strong growth included beverages, which expanded by 39.4 per cent, other transport equipment at 19.1 per cent and textiles at 17.4 per cent.
Among sectors registering declines, wood products fell by 10.5 per cent, pharmaceuticals by 8.9 per cent and wearing apparel by 5.2 per cent.Under the use-based classification, intermediate goods production increased by 12.2 per cent, while capital goods grew 10.4 per cent. Infrastructure and construction goods recorded growth of 7.2 per cent, followed by consumer durables at 6 per cent, primary goods at 4 per cent and consumer non-durables at 1.4 per cent.Intermediate goods, primary goods and capital goods emerged as the largest positive contributors to overall industrial growth under this classification.
During April–September 2026, industrial production grew by 6.8 per cent compared with the corresponding period last year. Manufacturing expanded by 7.5 per cent, electricity and gas supply rose 9.7 per cent, and water supply, sewerage and waste management increased 6.3 per cent. Mining and quarrying registered a contraction of 2.4 per cent.The September quick estimates were compiled at a weighted response rate of 86.5 per cent and remain subject to revision. The next IIP release, covering October 2026, is scheduled for November 30.

(Business Correspondent)