Manufacturing set a record by growing at 8% or more in the past three consecutive months.
This is the fifth monthly IIP data under the new series.
For August, the growth rates of the sectors, Mining & Quarrying, Manufacturing, Electricity & Gas Supply and Water Supply, Sewerage & Waste Management are (-) 5.6 per cent, 9.0 per cent, 12.3 per cent and 6.3 per cent, respectively.
Within manufacturing, 18 out of 23 industry groups at NIC 2 digit-level recorded a positive growth in August 2026 over August 2025, data showed.
The top three positive contributors for the month were i) manufacture of motor vehicles, trailers and semi-trailers (25.2%), ii) manufacture of electrical equipment (30.9%), and manufacture of other transport equipment (25.3%).
Also read | Ruchir Sharma’s India scorecard: How it fares on his 10-rule benchmarkThe corresponding growth rates of IIP as per use-based classification in August 2026 over August 2025 are: 3.5 per cent in Primary Goods, 16.9 per cent in Capital Goods, 13.7 per cent in Intermediate Goods, 6.4 per cent in Infrastructure/ Construction Goods, 11.1 per cent in Consumer durables and 2.1 per cent in Consumer non-durables (Statement III).
Based on Use-Based Classification, top three positive contributors to the growth of IIP for the month of August 2026 are Intermediate Goods, Capital Goods and Consumer durables.
Key data points
• Manufacturing output grew 9% year-on-year in August against a revised 8.2% in July.
• Electricity generation rose 12.3% year-on-year in August against an increase of 8.7% a month earlier.
• Mining activity fell 5.6% year-on-year in August against a decline of 0.9% in July.
• Output of consumer durables, including cars and phones, grew 11.1% year-on-year in August against a revised 12% increase a month earlier.
• Output of consumer non-durables, such as food items and toiletries, rose 2.1% year-on-year in August against a revised fall of 0.8% in the previous month.
• Capital goods output rose 16.9% year-on-year in August against a revised 19% increase in July.
• Industrial output between April-August grew 6.7%, compared to an increase of 4.2% a year earlier.
Revamped index
The govt released a revamped index on June 1, updating the base year to 2022-23 and expanding coverage to include sectors such as minor minerals, rare earth minerals, gas supply, water supply and sewerage, and waste management.
The new series also introduced more granular tracking of industrial activity, including separate indices for renewable and non-renewable electricity generation.
The index was expanded to cover 1,042 products across 463 item groups. The manufacturing basket was restructured, with 120 new item groups added and 64 removed.
Before the restructuring, the IIP tracked three broad sectors: mining, manufacturing and electricity. The revamped index retained the existing six use-based classification categories in the revised series — primary goods, capital goods, intermediate goods, infrastructure and construction goods, consumer durable goods and consumer non-durable goods.
Inputs from govt data, Reuters