IIP September 2026: Industrial Growth Slows to 6.7%, Manufacturing Up 7.6%

What happened

On 28 October 2026 the National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), released the Quick Estimates of the Index of Industrial Production (IIP) for September 2026. According to the official release, as reported by several outlets, industrial output grew 6.7% year-on-year in September 2026. This was slower than the 8.0% quick estimate for August 2026.

The IIP stood at 124.3 in September 2026, against 116.5 in September 2025. Manufacturing, the largest component, grew 7.6%, and electricity and gas supply grew 11.2%. Mining and quarrying contracted by 6.2%.

Background

• What the IIP measures: It is a monthly index of the volume of industrial output in India, compiled by the NSO (MoSPI). The first estimate each month is called a quick estimate and is revised in later releases.
• New series: PIB announced the first release of the new IIP series with base year 2022-23 = 100 on 1 June 2026. It replaced the earlier series with base year 2011-12.
• What changed in the new series (PIB, 1 June 2026):
• - A new sector, Water Supply, Sewerage and Waste Management, was added, and gas supply now sits with electricity as "Electricity and Gas Supply".
• - The basket grew to 1,042 products in 463 item groups, from 839 items in 407 item groups.
• - Data in value terms is now collected for 234 item groups, up from 109.
• - The series uses the National Industrial Classification (NIC) 2025.
• Sector weights in the new series: Manufacturing 76.062%, Mining and Quarrying 11.053%, Electricity and Gas Supply 10.865%, Water Supply, Sewerage and Waste Management 2.020%.

Key details

Sector-wise growth, September 2026 (year-on-year, as reported from the MoSPI release)

Use-based classification, September 2026 (year-on-year, as reported)

Within manufacturing: 17 of 23 industry groups (NIC 2-digit) grew over September 2025. The main contributors named in the release, as reported, were:

• Electrical equipment: 33.9%
• Rubber and plastics products: 19.9%
• Motor vehicles, trailers and semi-trailers: 19.0%

The IIP for October 2026 is scheduled for release on 30 November 2026, according to the reports.

Why it matters

• Growth signal: The IIP is one of the earliest monthly readings of industrial activity, ahead of quarterly GDP. A slowdown from 8.0% to 6.7% still leaves growth positive, led by manufacturing and power.
• Investment demand: Double-digit growth in capital goods and intermediate goods points to demand linked to investment and production chains, not just final consumption.
• Consumption gap: Consumer non-durables (1.4%) grew far slower than the other categories, which suggests everyday consumption demand was weaker than industrial and investment demand in September.
• Mining drag: Mining has a weight of about 11% in the new series, so its 6.2% contraction pulled the headline number down.
• Policy use: The RBI, the Ministry of Finance and analysts read the IIP along with other data, such as the eight core industries index, inflation and PMI surveys, to judge the pace of the economy.

Issues and criticism

• Quick estimates change: The September figures are quick estimates and will be revised in later releases. Students and analysts should treat month-to-month changes with care.
• Comparability with old data: The new series has a different base year, item basket and sector coverage. PIB gave sector-level linking factors to connect the two series, but said MoSPI does not prescribe a specific method for linking, leaving it to users.
• Uneven growth: Strong gains in a few groups, such as electrical equipment, sit alongside contraction in mining and weak growth in consumer non-durables.
• Base effects: Year-on-year rates depend on output in the same month a year earlier, so a single month's rate can look strong or weak for reasons unrelated to current activity.

Way forward

• Track the revised September figure and the October release on 30 November 2026 before drawing firm conclusions.
• Watch whether investment-linked categories keep growing and whether consumer non-durables pick up.
• Study the reasons for the fall in mining output in the official release and other mining data.
• Improve users' understanding of the new 2022-23 series, including how to compare it with the 2011-12 series.

Prelims pointers

• The IIP is compiled and released by the NSO, Ministry of Statistics and Programme Implementation.
• Current base year: 2022-23 = 100 (earlier 2011-12); first release of the new series announced on 1 June 2026.
• IIP growth, September 2026 (quick estimate): 6.7%; August 2026 quick estimate: 8.0%.
• Sector weights (new series): manufacturing 76.062%, mining 11.053%, electricity and gas 10.865%, water supply, sewerage and waste management 2.020%.
• New sector in the 2022-23 series: Water Supply, Sewerage and Waste Management.
• Fastest-growing use-based category in September 2026: intermediate goods (12.2%).
• Only sector to contract in September 2026: mining and quarrying (-6.2%).
• The new series uses NIC 2025 and a basket of 1,042 products in 463 item groups.

One-liners for SSC, Banking and Railways

• IIP stands for Index of Industrial Production.
• India's IIP grew 6.7% in September 2026.
• Manufacturing grew 7.6% in September 2026.
• The current IIP base year is 2022-23.
• Manufacturing has the highest weight in the IIP: 76.062%.
• Electricity and gas supply grew 11.2% in September 2026.

Test yourself with our weekly current affairs quiz and revise economy topics for SSC CGL.

Mains practice question

Q. "The Index of Industrial Production is an important early indicator of economic activity, but its monthly readings need careful interpretation." Discuss with reference to the September 2026 IIP data and the new 2022-23 series. (250 words)

Points to cover:

1. What the IIP measures, who compiles it, and the quick estimate and revision cycle.
2. September 2026 data: 6.7% headline growth, manufacturing and electricity leading, mining contracting, investment-linked categories ahead of consumer non-durables.
3. New series: base year 2022-23, wider item basket, new water supply and waste management sector, revised weights, NIC 2025.
4. Limits: revisions, base effects, comparability with the 2011-12 series; the need to read IIP with GDP, core industries and other data.