💰 Economy
Industrial output growth slows to 6.7% in September as mining shrinks
In 60 seconds: India's industrial production grew 6.7% in September from a year earlier, slower than 7.8% in August, government data released on Wednesday showed. Manufacturing rose 7.6% and electricity and gas 11.2%, but mining and quarrying shrank 6.2%. Capital goods, a sign of investment, grew 10.4%, while everyday consumer non-durables rose just 1.4%. The figure was slightly below economists' forecasts.
Why it matters
Factory output shows how fast jobs and incomes can grow. Strong capital goods suggest investment is holding up, but weak daily-use goods hint that household spending is soft.
Explain it simply
If a tea stall sells more kettles and stoves but fewer biscuits, the owner is investing for the future while customers are holding back. September's data looks like that.
The 3-minute read
What happened
The Index of Industrial Production stood at 124.3 in September against 116.5 a year ago. 17 of 23 manufacturing industry groups grew, led by electrical equipment (33.9%), rubber and plastic products (19.9%) and motor vehicles (19%).
Background
By use, intermediate goods grew 12.2%, infrastructure and construction goods 7.2%, consumer durables 6% and primary goods 4%.
How it works
The IIP compares the volume of goods produced in a month with the same month a year earlier. These are quick estimates and can be revised later.
What's next
Data for October 2026 is due on 30 November 2026.
What it means for you
Growing output of vehicles and electrical goods can mean more factory jobs; weak consumer goods growth shows many families are still spending carefully.
Key numbers
- 6.7%: IIP growth, September 2026
- 7.6%: Manufacturing growth
- −6.2%: Mining and quarrying
- 10.4%: Capital goods growth
Both sides
- Optimists: Strong capital and intermediate goods show factories and investment are in good shape.
- Sceptics: Slowing growth, shrinking mining and weak consumer goods point to softer demand ahead.
Key terms explained
- Capital goods
- Machines and equipment used to make other goods, such as factory machinery.
- Manufacturing
- Making goods in factories from raw materials; the biggest part of the IIP.
The story so far
- Sep 2025: Industrial production index stands at 116.5. The IIP for September 2025 stood at 116.5 on the 2022-23 base. This year's growth is measured against that level.
- Aug 2026: Industrial output growth first estimated at 8%. August's growth was first estimated at 8%. In the latest release it has been revised down to 7.8%.
- Today: Industrial output grows 6.7% in September, down from 7.8%
Exam notes (UPSC, SSC, Banking, PSC)
- The Index of Industrial Production (IIP) is released monthly by the National Statistics Office (NSO) under MoSPI.
- The IIP's current base year is 2022-23.
- The IIP covers three sectors: mining, manufacturing and electricity; manufacturing has the largest weight.
- Use-based classification groups goods as primary, capital, intermediate, infrastructure/construction, consumer durables and consumer non-durables.
Likely exam question: What does the Index of Industrial Production measure? Why are capital goods seen as a sign of investment?