India’s industrial output grew 8 per cent year-on-year in August 2026, accelerating from the 6.7 per cent expansion recorded in July, according to official data released on Monday. Manufacturing and electricity generation provided the main support, while mining remained a drag on overall performance.

The Index of Industrial Production (IIP) rose to 123.3 in August from 114.2 in the same month a year earlier. Manufacturing output increased 9 per cent, while electricity and gas supply grew 12.3 per cent. Water supply, sewerage and waste management expanded 6.3 per cent, but mining and quarrying contracted 5.6 per cent.

Manufacturing growth remained above 8 per cent for the third consecutive month, indicating sustained momentum across industrial segments. Of the 23 manufacturing groups tracked under the National Industrial Classification, 18 recorded year-on-year growth in August.

Electrical equipment was among the strongest-performing segments, with output rising 30.9 per cent. Production of other transport equipment increased 25.3 per cent, while motor vehicles, trailers and semi-trailers grew 25.2 per cent. Passenger cars, commercial vehicles and auto components contributed significantly to the expansion. Higher production of two-wheelers, railway rolling stock, related parts and service vehicles also supported the other transport equipment category.

The use-based classification pointed to broad-based gains. Capital goods output rose 16.9 per cent, intermediate goods increased 13.7 per cent and consumer durables grew 11.1 per cent, while infrastructure and construction goods expanded 6.4 per cent. Primary goods output increased 3.5 per cent and consumer non-durables rose 2.1 per cent. Intermediate goods, capital goods and consumer durables were the three largest positive contributors to overall IIP growth in August, offsetting weakness in mining.