Strong manufacturing and electricity gains lift India's August IIP growth to 8%

Key facts

• India's industrial output (IIP) grew 8% in August, faster than expected, driven by strong manufacturing and electricity gains despite a contraction in mining, per the Ministry of Statistics and Programme Implementation.
• July's IIP growth was revised upwards to 7.4% from the provisional estimate of 6.7%; industrial output had grown 4.7% in August 2025.
• Manufacturing, with the highest weight of 76% in the new IIP series, grew 9.0% in August, up from 8.2% in July.
• Electricity and gas supply output rose 12.3% in August, its fastest pace in 27 months, while mining and quarrying contracted 5.6%, its worst performance since September 2023.
• Electrical equipment, other transport equipment and motor vehicles recorded the highest manufacturing growth rates at 30.9%, 25.3% and 25.2% respectively.
• Intermediate goods growth hit a 29-month high of 13.7%, while capital goods and consumer durables grew 16.9% and 11.1% respectively; consumer non-durables grew 2.1% after contracting 0.8% in July.
• Industrial growth averaged 6.7% in the first five months of the current financial year, compared with 4.2% in the corresponding period last year; IIP growth averaged 7.7% in July-August, up from 6.2% in April-June.
• Bank of Baroda chief economist Madan Sabnavis estimated industrial output could grow 7-8% in FY27 if the current IIP growth pace is sustained.