Industrial output grows 6.7% in September, led by manufacturing and power

The country's industrial sector performed well in September 2026, with the Index of Industrial Production (IIP) recording a year-on-year rise of 6.7 per cent. According to figures released by the Union Statistics Ministry on Wednesday, the growth was driven mainly by a 7.6 per cent rise in manufacturing and an 11.2 per cent rise in electricity and gas supply. However, growth was slightly slower than the 8 per cent recorded in August.

According to the ministry's estimate, the IIP reached 124.3 in September 2026, against 116.5 in September 2025. By sector, the index for mining and quarrying stood at 90.4, manufacturing at 128.0 and electricity and gas supply at 128.6. The index for water supply, sewerage and waste management was 146.4.

Of the 23 industry groups in manufacturing, 17 showed positive growth. The manufacture of motor vehicles, trailers and semi-trailers grew 19 per cent. Manufacture of electrical equipment rose 33.9 per cent, and manufacture of rubber and plastic products rose 19.9 per cent.

The motor vehicle sector was supported by production of auto components, parts, accessories, passenger vehicles and commercial vehicles. In electrical equipment, the data show higher demand for goods such as switchgear, circuit breakers, control and meter panels, UPS systems and optical fibre connectors.

In the use-based classification, the index for September 2026 was 111.6 for primary goods, 153.4 for capital goods and 131.7 for intermediate goods. The index for infrastructure and construction goods was 133.0. Consumer durables stood at 133.1 and consumer non-durables at 111.8.

Intermediate goods, primary goods and capital goods made a major contribution to the growth in industrial output. This indicates strength in economic activity linked to investment and production.

Meanwhile, the Statistics Ministry has announced that it will use the Producer Price Index (PPI) instead of the Wholesale Price Index (WPI) for some product groups. The change will affect 234 of the 463 product groups in the IIP, which together carry a weight of about 36 per cent.

The ministry released a new series of the IIP on June 1, 2026, with 2022-23 as the base year. The September figures show that growth in the country's manufacturing and industrial sectors is continuing. Amid global uncertainty, the industrial sector's performance is considered important for economic growth.