India’s Industrial Growth Slows to 6.7% in September as Mining Contracts

India's industrial production growth slowed to 6.7 per cent in September 2026, from 7.8 per cent in August, mainly due to a contraction in mining activity and moderation in manufacturing output, according to government data released on Wednesday.

The Index of Industrial Production (IIP) stood at 124.3 in September, compared with 116.5 in the same month last year. The data, released by the National Statistics Office (NSO), are based on the revised base year of 2022-23.

Manufacturing, which accounts for around 76 per cent of the index, grew 7.6 per cent, compared with 8.6 per cent in August. Electricity and gas supply expanded 11.2 per cent, while water supply, sewerage and waste management grew 5.8 per cent. Mining and quarrying contracted 6.2 per cent, worsening from a 4.6 per cent decline in August.

Among 23 manufacturing industry groups, 17 recorded positive growth. Electrical equipment manufacturing led with 33.9 per cent growth, followed by rubber and plastics products at 19.9 per cent and motor vehicles, trailers and semi-trailers at 19 per cent. Auto components, passenger cars and commercial vehicles contributed significantly to automobile production.

According to use-based classification, intermediate goods grew 12.2 per cent, capital goods 10.4 per cent, infrastructure and construction goods 7.2 per cent, consumer durables 6 per cent, primary goods 4 per cent and consumer non-durables 1.4 per cent.

During April-September 2026, industrial production grew 6.8 per cent, compared with 4.4 per cent in the corresponding period last year. Manufacturing expanded 7.5 per cent during the six-month period.

PwC India's Ranen Banerjee attributed the slowdown to weaker mining activity, moderation in consumer durables and capital goods, and possible easing of festive demand. Crisil's Dipti Deshpande said the moderation largely reflected a high-base effect and softer mining and electricity output.

India Ratings and Research Chief Economist Devendra Pant expects IIP growth to improve to 8-9 per cent in October, supported by a favourable base effect.

The September figures are quick estimates compiled using an 86.5 per cent weighted response rate and may be revised as additional production data become available.