IIP Growth Hits 8% in August 2026 – Manufacturing Leads – 29 September 2026

What happened

India’s Index of Industrial Production (IIP) grew 8.0% year-on-year in August 2026, up from 4.7% a year earlier, according to Quick Estimates released around 29 September 2026. Manufacturing (weight ~76%) rose about 9%, electricity and gas supply expanded about 12.3%, while mining and quarrying contracted about 5.6%. For April–August 2026-27, cumulative IIP growth is reported around 6.7%.

Use-based classification showed strong capital goods (~16.9%), intermediate goods (~13.7%) and infrastructure goods (~12%) growth, reflecting public capital expenditure and festive-demand related durable goods strength (consumer durables ~11.1%).

Why it matters for exams

• IIP is compiled by MoSPI; base year currently referenced as 2022–23=100 in recent releases
• Three sectors: Mining, Manufacturing, Electricity (plus newer water/waste segments in updated series)
• Links to GDP industrial GVA, core industries and credit-to-industry trends

Practice MCQs

1. IIP growth for August 2026 was reported at about:

   (A) 2.1%
   (B) 4.7%
   (C) 8.0%
   (D) 12.3%

   Answer: (C) – Quick Estimates put August 2026 IIP growth at 8.0%.

2. Which ministry / office releases IIP Quick Estimates in India?

   (A) RBI only
   (B) MoSPI
   (C) SEBI
   (D) NITI Aayog only

   Answer: (B) – IIP is released by the Ministry of Statistics and Programme Implementation.

3. In the August 2026 IIP split, which broad sector contracted?

   (A) Manufacturing
   (B) Electricity
   (C) Mining and quarrying
   (D) Capital goods

   Answer: (C) – Mining and quarrying contracted about 5.6%.

Source: MoSPI Quick Estimates / DD News, Mint, Indian Express reports, 29 September 2026.