October 29: India’s industrial output grew 6.7% year on year in September, slowing from August’s revised 7.8%, according to the Statistics Ministry’s October 28 release. Manufacturing expanded 7.6%, while a fall in mining showed why the headline needs to be read alongside the sector breakdown.
Key highlights
- September’s overall index was 124.3, against 116.5 a year earlier.
- Manufacturing growth was 7.6%; electricity and gas supply rose 11.2%.
- Mining and quarrying contracted 6.2%.
- The series uses 2022–23 as its base year, equal to 100.
The sector picture
| Sector | September growth, year on year |
|---|---|
| General index | 6.7% |
| Manufacturing | 7.6% |
| Electricity and gas supply | 11.2% |
| Mining and quarrying | −6.2% |
| Water, sewerage and waste management | 5.8% |
Statement I of the ministry’s release gives August’s revised overall growth as 7.8%. The summary also repeats its earlier quick estimate of 8.0%; the revised table is the appropriate comparison used here. September’s figures remain quick estimates.
How broad was the expansion?
The ministry said 17 of 23 manufacturing industry groups recorded growth. Electrical equipment, motor vehicles and rubber and plastics were among the positive contributors. Growth in those groups does not establish that every factory or product line expanded.
Our calculation: The published overall index levels, 124.3 and 116.5, imply approximately 6.7% growth: (124.3 ÷ 116.5 − 1) × 100. The calculation uses rounded indices, so it is a consistency check rather than a substitute for the ministry’s underlying dataset.
An index level above 100 describes output relative to the base period. It should not be read as the percentage increase during the latest month. Similarly, year-on-year growth compares September with September, rather than with the preceding August.
What the numbers can and cannot show
IIP is useful for tracking the volume of industrial production. It does not directly report a manufacturer’s sales revenue, profit margin or employment. A company can produce more units while earning a different margin because its input costs or selling prices have changed.
The mix of sectors also matters. A large percentage rise in a smaller component does not necessarily outweigh a more moderate change in a heavily weighted one. Readers comparing the headline across releases should use the same base-year series and check whether earlier observations have been revised.
For a fuller view of demand, the production data can be considered alongside separately released trade, consumption and investment indicators. Those measures answer different questions; this release alone cannot establish the performance of the entire economy.
What to watch
The ministry schedules October’s IIP release for November 30. Subsequent data will help show whether September’s sector pattern persists. Any comparison should retain the distinction between the month being measured, the date of publication and the revision status.
Sources
- Ministry of Statistics and Programme Implementation: September 2026 IIP quick estimates and statistical tables
- MoSPI eSankhyiki: Index of Industrial Production data portal
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