PR No – 186
28th Sep 2026
New Delhi
Manufacturing Index reach new high over sizable base: PHDCCI
The Index of Industrial Production (IIP) recorded an 8% in August 2026, year-on-year (quick estimate) growth, supported by 9% growth in the Manufacturing sector and a double digit growth of 12.3% in the Electricity & Gas Supply sector, said Shri Rajeev Juneja, President, PHDCCI.
India’s manufacturing sector, moving from strength to strength, recorded growth of more than 8% in the last three consecutive months. For the month of August 2026, the top three positive contributors include, “Manufacture of motor vehicles, trailers and semi-trailers” (25.2%), “Manufacture of electrical equipment” (30.9%), and “Manufacture of other transport equipment” (25.3%).
The consistent growth in “Manufacture of electrical equipment”, especially item groups “Electrical Apparatus for Switching or Protecting Electrical Circuits (e.g., Switchgear, Circuit Breakers/Switches, Control/Meter Panels) and Parts Thereof”, “End-Face Connectors for Optical Fibres and Cables” and “UPS and Solid-State Drives”, for August 2026, are a strong indicator of India’s technological development, added Shri Juneja.
The Quick Estimate of IIP stands at 123.3 against 114.2 in August 2025. The indices of Industrial Production for Mining & Quarrying, Manufacturing, Electricity & Gas Supply and Water Supply, Sewerage & Waste Management for the month of August 2026 stand at 85.7, 126.6, 133.9 and 147.6, respectively.
Under the use based categorisation, with 16.9% in Capital Goods, 13.7% in Intermediate Goods, and 11.1% in Consumer durables, categories recorded a double digit growth.
The high growth in capital goods is an indication of strong investment sentiment of the industry, supported by the domestic consumption in the country, said Shri Juneja.
Going forward, the broad-based expansion across manufacturing, electricity & gas supply and use based sectors is a positive indicator of resilience and depth of India’s industrial growth. It is crucial that the government continues the thrust on structural reforms, coupled with measures for attracting greater private investment and further integrating India into global value chains, said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.