New Delhi: India’s industrial production growth slowed to 6.7 percent year-on-year in September from a revised 7.8 percent in August, as all four major industrial sectors recorded weaker growth rates, according to data released Wednesday by the Ministry of Statistics and Programme Implementation (MoSPI).
The slowdown extended across most categories of goods, although industrial production growth in the first half of the financial year remained stronger than a year earlier.
The Index of Industrial Production (IIP), released monthly by the National Statistics Office, measures changes in the volume of production across manufacturing, mining, electricity and gas supply, and water supply, sewerage and waste management.
September’s growth rate was below the 2026 peak of 8.8 percent recorded in June, but remained above the 6.1 percent recorded in September last year.
Gfx: Manya Agarwal | ThePrintThe broader picture for the financial year so far remains stronger. Industrial production grew 6.8 percent year-on-year during April–September 2026, compared with 4.4 percent growth in the corresponding period last year.
This suggests that despite the recent loss of momentum, industrial activity expanded at a faster pace in the first half of the current financial year than in the same period a year earlier.
Manufacturing growth slips below 8 pc
Manufacturing output grew 7.6 percent year-on-year in September, down from a revised 8.6 percent in August. The sector, which carries approximately 76 percent of the total index weight, had recorded growth above 8 percent for three consecutive months from June to August.
Electricity and gas supply continued to record the fastest growth among the four major sectors at 11.2 percent, although this was lower than August’s 12.3 percent. Mining and quarrying contracted further, with output falling 6.2 percent year-on-year, compared with a 4.6 percent decline in August.
Growth in water supply, sewerage and waste management also slowed marginally, from 6.3 percent in August to 5.8 percent in September.
Growth slowed across five of the six use-based categories of industrial production in September, with capital goods and consumer durables recording some of the sharpest declines in growth rates.
Capital goods, which are used in the production of other goods or services, recorded 10.4 percent year-on-year growth in September, down from 15.9 percent in August.
Consumer durables saw growth slow from 10.5 percent to 6 percent.
Consumer non-durables were the only category to record an improvement, with production marginally up from 1.4 percent in September after contracting 1.1 percent in August.
The figures suggest that while investment-related industrial production continued to expand faster than consumer goods production, growth in capital goods and consumer durables weakened in September.
Within manufacturing, 17 of 23 industry groups recorded positive year-on-year growth in September, with automobiles and electrical equipment among the largest contributors.
However, performance was mixed among heavily weighted industries. Coke and refined petroleum products grew 5.7 percent, while chemicals contracted 0.6 percent. Pharmaceutical manufacturing also declined 8.9 percent.
(Edited by Tony Rai)