PrepMaticCurrent affairs · September 2026
Industrial production grows 8.0% in August 2026
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India's Index of Industrial Production (IIP) grew 8.0% year on year in August 2026, according to quick estimates released by MoSPI on 28 September 2026. Growth in July 2026 was 6.7% (quick estimate). Manufacturing grew 9.0%, and the ministry noted that manufacturing has now grown 8% or more for three months in a row, which it called a record.
Sector-wise growth
| Sector | August 2026 growth |
|---|---|
| Mining and quarrying | minus 5.6% |
| Manufacturing | 9.0% |
| Electricity and gas supply | 12.3% |
| Water supply, sewerage and waste management | 6.3% |
| Overall IIP | 8.0% |
The IIP stood at 123.3 against 114.2 in August 2025, on the base year 2022-23=100. Of the 23 manufacturing industry groups, 18 recorded positive growth. The biggest contributors were motor vehicles and trailers (25.2%), electrical equipment (30.9%) and other transport equipment (25.3%).
Use-based classification
| Category | Growth |
|---|---|
| Capital goods | 16.9% |
| Intermediate goods | 13.7% |
| Consumer durables | 11.1% |
| Infrastructure and construction goods | 6.4% |
| Primary goods | 3.5% |
| Consumer non-durables | 2.1% |
Intermediate goods, capital goods and consumer durables were the top three contributors. Quick estimates come out on the 28th of every month and are revised later.
Why it matters for exams
IIP, its base year and the use-based categories are regular banking awareness and economy topics for IBPS, SBI, RBI Grade B and TNPSC general studies. Learn which sector contracted and which grew fastest. Link it to inflation data such as the August 2026 WPI release.
Practice questions
Question 1
Which sector of IIP recorded negative growth in August 2026?
- A. Manufacturing
- B. Electricity and gas supply
- C. Mining and quarrying
- D. Water supply
Question 2
What was overall IIP growth in August 2026?
- A. 6.7%
- B. 8.0%
- C. 9.0%
- D. 12.3%
Answers
- C. Mining and quarrying contracted by 5.6%.
- B. Overall IIP growth was 8.0%. 6.7% was July's quick estimate and 9.0% was manufacturing.
Source
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- WPI inflation, August 2026Wholesale inflation (WPI, base 2022-23) rose to 9.92% in August 2026 with fuel and power at 22.93%. Provisional estimates released 14 September 2026.
- PLFS bulletin, August 2026MoSPI's PLFS bulletin for August 2026 shows an unemployment rate of 5.0%, LFPR of 55.6% and female LFPR of 34.8% for people aged 15 and above.
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