India’s industrial growth surges to 8% in August: What drove the big jump?

The growth rates of the Mining & Quarrying, Manufacturing, Electricity & Gas Supply, and Water Supply, Sewerage & Waste Management sectors for August 2026 stood at (-) 5.6 per cent, 9.0 per cent, 12.3 per cent and 6.3 per cent, respectively.

The Quick Estimate of IIP stood at 123.3 in August 2026, compared with 114.2 in August 2025. The indices for Mining & Quarrying, Manufacturing, Electricity & Gas Supply, and Water Supply, Sewerage & Waste Management stood at 85.7, 126.6, 133.9 and 147.6, respectively, during the month.

Within the Manufacturing sector, 18 of the 23 industry groups at the NIC two-digit level recorded positive growth in August 2026 compared with the corresponding month of the previous year.

The top three positive contributors to manufacturing growth were “Manufacture of motor vehicles, trailers and semi-trailers” at 25.2 per cent, “Manufacture of electrical equipment” at 30.9 per cent, and “Manufacture of other transport equipment” at 25.3 per cent.

Within the “Manufacture of motor vehicles, trailers and semi-trailers” industry group, item groups such as auto components, spares and accessories, passenger cars, and commercial vehicles made significant contributions to growth.

In the “Manufacture of electrical equipment” group, electrical apparatus for switching or protecting electrical circuits, including switchgear, circuit breakers/switches and control/meter panels, along with end-face connectors for optical fibres and cables, UPS and solid-state drives, contributed significantly to growth.

In the “Manufacture of other transport equipment” group, two-wheelers, including motorcycles and scooters, railway rolling stock/parts, maintenance or service vehicles, and parts and accessories of motorcycles, mopeds and sidecars were among the significant contributors.