IIP grows 8.0% in August 2026 on new base 2022-23; manufacturing 9.0%
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MoSPI’s Quick Estimate shows the Index of Industrial Production grew 8.0 per cent in August 2026 over August 2025, up from 6.7 per cent in July. Manufacturing grew 9.0 per cent and electricity and gas 12.3 per cent, while mining fell 5.6 per cent. The index, on the new base 2022-23, stood at 123.3.
- Released
- MoSPI, 28 Sep 2026
- Base year
- 2022-23 = 100
- IIP growth
- 8.0% (July: 6.7%)
- Index
- 123.3 vs 114.2
- Manufacturing
- 9.0%
- Next release
- 28 Oct 2026
IIP for August 2026: what happened?
IIP is the monthly pulse of factories, mines and power plants. August’s number is strong, and manufacturing has grown 8 per cent or more for three months in a row.
- Quick Estimate IIP growth for Aug 2026: 8.0% (July: 6.7%) [PIB].
- Sector growth: mining –5.6%, manufacturing 9.0%, electricity & gas 12.3%, water supply/sewerage 6.3%; index 123.3 vs 114.2 [PIB].
What is the IIP?
- A monthly index of the volume of industrial output, compiled by MoSPI from data sent by source agencies.
- Quick Estimates come out on the 28th of every month (or the next working day) and are revised later.
- The base is now 2022-23 = 100; industries are grouped by NIC-2025.
- Manufacturing carries about three-fourths of the weight.
Which industries led?
- 18 of 23 manufacturing groups grew.
- Top contributors: motor vehicles (25.2%), electrical equipment (30.9%) and other transport equipment (25.3%).
- Items driving growth include passenger cars, commercial vehicles, switchgear, two-wheelers and railway rolling stock.
How did each sector do?
| Sector | Weight | Index Aug 2026 | Growth % |
|---|---|---|---|
| Mining & Quarrying | 11.053 | 85.7 | -5.6 |
| Manufacturing | 76.062 | 126.6 | 9.0 |
| Electricity & Gas | 10.865 | 133.9 | 12.3 |
| Water supply, sewerage | 2.020 | 147.6 | 6.3 |
| General | 100.00 | 123.3 | 8.0 |
What does the use-based split show?
| Group | Index | Growth % |
|---|---|---|
| Primary goods | 111.8 | 3.5 |
| Capital goods | 140.7 | 16.9 |
| Intermediate goods | 131.8 | 13.7 |
| Infrastructure/construction | 132.5 | 6.4 |
| Consumer durables | 129.4 | 11.1 |
| Consumer non-durables | 114.3 | 2.1 |
Why does IIP for August 2026 matter?
| Angle | What to note |
|---|---|
| Investment | Capital goods up 16.9% hints at new capacity being built. |
| Demand | Consumer durables up 11.1%, but non-durables only 2.1%. |
| Policy | Feeds GDP estimates and RBI’s reading of the economy. |
What are the challenges in IIP for August 2026?
- Mining shrank 5.6%.
- Consumer non-durables, a sign of mass demand, grew only 2.1%.
- Quick Estimates rest on an 88.0% response rate and will be revised.
What should be done next on IIP for August 2026?
- Watch whether rural demand picks up for non-durables.
- Check revised figures before drawing firm conclusions.
What can Prelims ask on IIP for August 2026?
- IIP is released by MoSPI.
- New base year: 2022-23.
- Quick Estimate released on the 28th of each month.
- Manufacturing weight about 76%.
- Use-based groups: primary, capital, intermediate, infrastructure, consumer durables, non-durables.
How to write about IIP for August 2026 in Mains
Practice question (10 marks, 150 words): What does the Index of Industrial Production tell us about the economy, and what are its limits as an indicator?
- What IIP is, base 2022-23.
- August 2026 reading.
- Limits: quick estimates, formal sector, volume only.
- Conclusion.
How to use this in Mains
- As per PIB, MoSPI (2026-09-28): quick Estimate IIP growth for Aug 2026: 8.0% (July: 6.7%).
- IIP composition, base year and eight core industries are classic Prelims.
Quotable data pointSector growth: mining –5.6%, manufacturing 9.0%, electricity & gas 12.3%, water supply/sewerage 6.3%; index 123.3 vs 114.2.
PIB, MoSPI: IIP Quick Estimates for August 2026, 28 Sep 2026
Exam angle
Prelims: IIP base year; sectors in IIP; release date.
Practice MCQs
Original practice questions (not PYQs).
The Index of Industrial Production is released by
Answer (c) & explanation
PIB, 28 Sep 2026.
In IIP (base 2022-23), the sector with the highest weight is
Answer (b) & explanation
Weight 76.062.
Among use-based groups, the fastest growth in August 2026 was in
Answer (a) & explanation
16.9 per cent.
Questions students ask about this
What was IIP growth in August 2026?
8.0 per cent over August 2025.
What is the base year of IIP now?
2022-23 = 100.
Which sector shrank?
Mining and quarrying, by 5.6 per cent.
When is IIP released?
On the 28th of every month, or the next working day.
Keep studying
Go deeper
Official source: PIB, MoSPI: IIP Quick Estimates for August 2026, 28 Sep 2026
facts from cited sources only; faculty review pending