Industrial growth slows to 6.7% in Sept due to contraction in mining

New Delhi, Oct. 28 -- Industrial production growth slowed to 6.7 per cent in September compared to the previous month, mainly due to contraction in mining activity and sluggishness in manufacturing, government data released on Wednesday showed.

In August, the Index of Industrial Production (IIP) expanded 7.8 per cent, and the reading was 8 per cent on the basis of a quick estimate by the National Statistics Office (NSO).

The IIP growth for September 2026 is 6.7 per cent, which was 8 per cent (quick estimate) in August 2026, NSO said in a release on quick estimates for September.

NSO said indices for August have incorporated revised production data.

Calculations are based on new series that came into effect from April with the base year of 2022-23.

"In September 2026, the IIP recorded a 6.7 per cent year-on-year growth, supported by 7.6 per cent growth in the manufacturing sector and strong growth of 11.2 per cent in the electricity and gas supply sector," an official release said.

In the first half of the fiscal year, IIP growth stood at 6.8 per cent, the National Statistics Office (NSO) said in the release.

The expansion in the manufacturing sector, which has nearly 76 per cent weight in the index, was 8.6 per cent in August.

The contraction in the 'mining and quarrying' sector was (-) 6.2 per cent in September. The decline was (-) 4.6 per cent in August.

The growth in 'electricity and gas supply' and 'water supply, sewerage and waste management' was sluggish in September compared to the preceding month.

Within the manufacturing sector, 17 out of 23 industry groups recorded positive growth in September.

The top three positive contributors were 'manufacture of motor vehicles, trailers and semi-trailers', 'manufacture of electrical equipment', and 'manufacture of rubber and plastics products', NSO said.

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

The top three positive contributors to the growth of the industrial production index in September were intermediate goods, primary goods and capital goods.

Published by HT Digital Content Services with permission from Millennium Post.