EL7.AI
Macro EconomyMediumUpdated×2•Originally published 28 October 2026•Updated 28 October 2026•
4 min read

India’s Industrial Production Grows 6.7% in September, Below Economists’ Forecasts

Key Facts

1India’s industrial production grew 6.7% in September, below forecasts of 7.3% and after 7.8% in August.
2Mining and quarrying contracted 6.2% in September, compared with a 4.6% contraction in August.
3Industrial production grew 6.8% during April-September, compared with 4.4% in the corresponding period.
4The core industries index rose 7.9% in September, after 5.9% in August.

India’s industrial production index grew 6.7% year on year in September 2026, slowing from 7.8% in August after revision and falling short of economists’ forecasts of 7.3%, according to government data and Reuters coverage. The official release showed the index at 124.3 points, compared with 116.5 points in September 2025. The slower pace of growth coincided with a contraction in mining and quarrying, while manufacturing, electricity and gas supply remained in expansion. Manufacturing grew 7.6%, while electricity and gas supply recorded stronger growth of 11.2%. But the September estimate is quick and subject to revision in subsequent releases, making the current reading preliminary.

Mining and quarrying were the weakest components of the index in September, with output contracting 6.2% year on year, compared with a 4.6% contraction in August. By contrast, manufacturing grew 7.6%, down from 8.6% in August, according to the official table. Electricity and gas supply grew 11.2%, compared with 12.3% in the previous month. Output in water supply, sewerage and waste management rose 5.8% in September, after 6.3% in August. The month’s reading thus combined faster growth in some service and production sectors with continued pressure from mining.

Within manufacturing, 17 of 23 groups recorded positive growth in September compared with the same month a year earlier. The ministry classified the manufacture of motor vehicles, trailers and semi-trailers as the largest positive contributor, with growth of 19.0%. The manufacture of electrical equipment followed with an increase of 33.9%, then rubber and plastic products, which grew 19.9%. These figures reflect clear variation among manufacturing groups: motor vehicles led the positive contributors despite growing at a slower rate than the other two groups. By use, intermediate goods rose 12.2% and capital goods 10.4%, while output of consumer durables grew 6.0% and non-durables 1.4%.

Across the six months from April to September, industrial production grew 6.8%, compared with 4.4% in the corresponding period a year earlier, according to the ministry. Mining and quarrying, however, contracted 2.4% over the same period, weakening the picture of cumulative performance across industrial sectors. In a separate measure, the core industries index rose 7.9% year on year in September, after growth of 5.9% in August. Iron ore led the increase in the index, growing 18.4%, followed by electricity output, up 11.4%, and coal, up 10.7%. Refinery products, cement and steel also grew 10.3%, 9.8% and 4.9%, respectively; the core industries index covers a different range from the industrial production index.

Cumulatively, the core industries index rose 5.1% from April to September 2026, compared with 2.5% in the corresponding period a year earlier, according to the Ministry of Commerce and Industry. The ministry said coal, refinery products, steel and iron ore had been its main drivers in recent months. This result differs from the mining reading in the industrial production index, which recorded a contraction over the six months, while the core industries index showed strong growth in iron ore in September. The ministry prepared the quick September estimate for the industrial production index using a weighted response rate of 86.5%, while the final revision for August was based on a rate of 92.0%. The latest month’s estimate remains subject to adjustment as additional data arrive.

The Ministry of Statistics set November 30, 2026, as the release date for October’s industrial production index data, with the next reading set to compare sector performance after September’s slowdown. The core industries index for October is scheduled for release on November 20, 2026. The core index reading will come before the industrial production data, while September’s estimate remains subject to revision in subsequent releases. July’s reading showed annual industrial production growth of 6.7%, with manufacturing expanding 7.3% and electricity and gas supply 8.7%. In the August release, the ministry said manufacturing had recorded growth of at least 8% for three consecutive months, before its growth rate fell to 7.6% in September.