India's Index of Industrial Production (IIP) growth eased to a **four-month low of 6.7% in September 2026**, down from 9.3% in August. While still robust, the moderation indicates a slight cooling of manufacturing activity, with capital goods showing strong growth but consumer durables lagging.
6.7%
IIP Growth (Sep 2026)
Aug 2026: 9.3%→6.7%
📊 One chart explains it
India's IIP Growth (YoY %)
Takeaway: India's industrial production growth moderated in September after a strong run, indicating a slight cooling in factory output.
⏳ Time Machine
How today’s news fits into the bigger picture
May 2026
Previous Low Growth
The IIP recorded a growth of 5.0%, marking the lowest point before the current slowdown and providing a comparative baseline for the September figures.
August 2026
Robust Growth Surge
IIP growth peaked at 9.3%, indicating strong industrial activity preceding the current moderation. This was driven by a healthy performance across sectors.
September 2025
Year-Ago Performance
growth stood at 5.8% in September 2025, showing that while the current 6.7% is higher, the month-on-month trend has decelerated.
This quarter (Q2 FY27)
Capital Goods Strong
Despite overall moderation, the capital goods sector showed strong growth of 12.1%, signaling sustained investment by businesses.
Today
India's Index of Industrial Production (IIP) growth slowed to 6.7% in September 2026, a four-month low.
What happens next?
Policymakers will closely monitor October and November IIP data, with the Reserve Bank of India considering these trends for its upcoming monetary policy decisions within the next two months.
India's industrial output growth, as measured by the Index of Industrial Production (IIP), slowed to a **four-month low of 6.7%** in September 2026. This marks a deceleration from the robust **9.3% growth** recorded in August 2026. The manufacturing sector, which holds the largest weight in the index, grew by 6.3%, while the electricity and mining sectors expanded by 9.2% and 7.9% respectively. Although the overall growth moderated, the capital goods segment continued its strong performance with **12.1% growth**, signaling ongoing investment. However, consumer durables lagged significantly at just **2.5%**, indicating cautious consumer spending. This data suggests a mixed picture for the economy, with investment holding up but consumption facing headwinds.
💭 If you're wondering…
Capital goods are used to produce other goods (e.g., machinery, factory equipment), indicating investment. Consumer durables are long-lasting goods bought by consumers (e.g., cars, refrigerators), indicating household spending.
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