The Index of Industrial Production (IIP) recorded a growth of 6.7% for the month of September 2026 (year- on - year)(quick estimate), boosted by 11.2% growth in Electricity & Gas Supply and Water Supply and Manufacturing growth at 7.6%, said Mr. Anil Gupta, President, PHDCCI.
Within the Manufacturing sector, with aggregate weight of 76.062, 17 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in September 2026 over September 2025.
The top three positive contributors for the month of September 2026 are – “Manufacture of electrical equipment” (33.9%), “Manufacture of rubber and plastics products” (19.9%) and “Manufacture of motor vehicles, trailers and semi-trailers” (19%). This sectoral growth of Manufacturing is broad based and indicates a strong domestic consumer demand, he said.
Representing robust outlook towards technology, the industry group “Manufacture of electrical equipment”, item groups “Electrical Apparatus for Switching or Protecting Electrical Circuits (e.g., Switchgear, Circuit Breakers/Switches, Control/Meter Panels) and Parts Thereof”, “UPS and Solid-State Drives” and “End-Face Connectors for Optical Fibres and Cables” have shown significant contribution in growth, said Mr Gupta.
Within Electricity & Gas Supply, with a weight of 10.865, Electricity Generation from Non-Renewable Sources recorded double digit growth of 16.5% in September 2026 over September 2025.
Double digit growth was also recorded in Use-Based Classification in September 2026 over September 2025 in its categories of Capital Goods (weight 8.082) at 10.4% and Intermediate Goods (weight 22.416) at 12.2%.
High consistent growth in Capital goods and Intermediate goods represents the positive investment sentiment of Indian Industry, said Mr Gupta.
“The September IIP data point to a differentiated industrial cycle. Strong growth in manufacturing and electricity-related activity contrasts with the contraction in mining and the relatively modest expansion in consumer non-durables. The key consideration is that the strength in capital and intermediate goods is translating into sustained investment and broader demand across industrial segments albeit by a lag” said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.
