# Industrial output growth slows to a four-month low of 6.7% in September 2026 URL: https://upsc.help/current-affairs/2026-10-29/iip-september-2026-four-month-low/ Date: 29 October 2026 (2026-10-29) Source: Indian Express, Page 19 UPSC papers: GS3 Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing. **In one line:** India's industrial output grew 6.7% in September 2026, the slowest in four months, with strong capital and intermediate goods but weak consumer non-durables and a mining contraction. India's Index of Industrial Production (IIP) grew 6.7% year-on-year in September 2026, according to the quick estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on 28 October 2026. This was a four-month low. Growth for August was revised down to 7.8% from the earlier quick estimate of 8%. The index stood at 124.3 in September 2026 against 116.5 a year earlier, on the new series with base year 2022-23. For April to September 2026, cumulative growth was 6.8%, compared with 4.4% in the same period of 2025. Manufacturing, which carries a weight of 76.06% in the new index, grew 7.6%, slower than 8.6% in August. Electricity and gas supply grew 11.2% and water supply, sewerage and waste management, a sector added in the new series, grew 5.8%. Mining and quarrying contracted 6.2%, after falling 4.6% in August; The Indian Express linked it to monsoon disruptions. Seventeen of 23 manufacturing groups grew, led by electrical equipment (33.9%), rubber and plastics products (19.9%) and motor vehicles, trailers and semi-trailers (19.0%), while pharmaceuticals fell 8.9% and wearing apparel 5.2%. By use, intermediate goods grew 12.2% and capital goods 10.4%, infrastructure and construction goods 7.2%, consumer durables 6.0% and primary goods 4.0%. Consumer non-durables, everyday goods such as food products and toiletries, grew just 1.4%, though this was their first rise after two months of contraction. Strong capital and intermediate goods suggest that investment and supply chains are holding up. The weak non-durables figure is the pain point: it signals that mass consumption demand remains soft, and the paper noted that export-oriented sectors such as apparel, chemicals and pharmaceuticals slowed amid global market disruptions. ## Prelims facts - IIP growth was 6.7% in September 2026, a four-month low; August was revised to 7.8% from 8%. - The IIP now uses base year 2022-23 and has four sectors, including a new water supply, sewerage and waste management sector. - Manufacturing (weight 76.06%) grew 7.6%, electricity and gas 11.2%, while mining contracted 6.2%. - Intermediate goods (12.2%) and capital goods (10.4%) led the use-based categories; consumer non-durables grew only 1.4%. - April to September 2026 growth was 6.8%, against 4.4% a year earlier. ## Quick recall - **IIP growth in September 2026?** 6.7%, a four-month low (quick estimate). - **Revised IIP growth for August 2026?** 7.8%, down from the 8% quick estimate. - **Base year of the current IIP series?** 2022-23. - **Weight of manufacturing in the new IIP?** 76.06%. - **Which sector was added to the IIP in the new series?** Water supply, sewerage and waste management. - **Mining output growth in September 2026?** Contracted 6.2%. - **Weakest use-based category in September 2026?** Consumer non-durables, up 1.4%. - **Cumulative IIP growth, April to September 2026?** 6.8%, against 4.4% a year earlier. ## Prelims practice question With reference to the Index of Industrial Production (IIP) in India, consider the following statements: 1. It is compiled and released by the Ministry of Statistics and Programme Implementation. 2. In the series with base year 2022-23, manufacturing has a weight of about three-fourths. 3. The IIP covers the services sector as well as industry. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: (a) 1 and 2 only. Statement 1 is correct: MoSPI releases the IIP. Statement 2 is correct: manufacturing's weight is 76.06% in the new series. Statement 3 is wrong: the IIP measures industrial output only (mining, manufacturing, electricity and gas, and water supply and waste management), not services. ## UPSC previous-year questions this connects to - UPSC Mains 2017, GS3: "Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period" Give reasons. How far the recent changes in Industrial Policy are capable of increasing the industrial growth rate? (https://upsc.help/pyq/q028-industrial-growth-rate-has-lagged-behind-overall/) How to use this story in the answer: Gives current data showing industrial growth is uneven: investment goods are strong while mass consumer goods and mining lag. - UPSC Mains 2023, GS3: Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard. (https://upsc.help/pyq/q008-faster-economic-growth-requires-increased-share-manufacturing/) How to use this story in the answer: Shows manufacturing dominates industrial output but labour-intensive segments are weak, supporting arguments for MSME-focused policy. ## Mains practice question Strong growth in capital and intermediate goods alongside weak consumer non-durables output points to an uneven industrial recovery. Analyse with reference to the IIP data for September 2026 and suggest measures to broaden it. (150 words) ### Model answer India's IIP grew 6.7% in September 2026, a four-month low, with April to September growth at 6.8% against 4.4% a year earlier. ## Signs of strength - Capital goods up 10.4%, intermediate goods 12.2%: investment and supply chains are robust. - Manufacturing (weight 76.06%) grew 7.6%; electrical equipment rose 33.9% and motor vehicles 19.0%. - Electricity and gas supply grew 11.2%. ## Signs of unevenness - Consumer non-durables grew only 1.4%, showing weak mass consumption. - Mining contracted 6.2%, hit by monsoon disruptions. - Export-linked pharmaceuticals (-8.9%) and apparel (-5.2%) fell. ## Broadening the recovery - Support rural incomes and real wages to lift everyday consumption. - Help labour-intensive exporters diversify markets. - Speed up mining approvals and monsoon-proof logistics. - Use the new 2022-23 base series, with renewable power and waste management, to target policy better. ## Conclusion The investment cycle is carrying industry for now; durable, job-rich industrial growth needs mass consumption demand and labour-intensive exports to join it. ## The basics ## Why this matters The Index of Industrial Production is India's main monthly gauge of factory, mine and power output. UPSC tests what it measures, who releases it, its weights and how it differs from GDP or the core sector index. The September 2026 numbers, released on 28 October, also make a good Mains example of uneven growth. ## What the IIP measures The IIP is a volume index: it tracks how much is produced, not its value. It is released by MoSPI with a short lag; since 2025 the quick estimate comes out on the 28th of each month. Each quick estimate is replaced by a final estimate the following month, which is why August's 8% became 7.8%. ## The new series In 2026 MoSPI moved the IIP to base year 2022-23 from 2011-12. The new series adds a fourth sector, water supply, sewerage and waste management, and shows renewable electricity separately. A newer base year matters because the economy's structure changes: new products appear, old ones fade, and weights should reflect current output. ## Two ways to read the index The sectoral view tells you where output comes from. The Use-based classification tells you what the output is used for, and so says more about demand. ## What the pattern means Capital goods are machines and equipment, so their growth points to investment. Intermediate goods are inputs such as steel or chemicals, so they reflect supply chains. Consumer non-durables are daily-use goods bought by most households; their weak growth suggests mass demand is soft. The Base effect also matters: a high or low figure a year earlier can flatter or depress this year's growth rate. ## Related indicators The Index of Eight Core Industries covers a narrower set of infrastructure industries and comes out earlier, so it is often read as a preview of the IIP. Together with MoSPI data on GDP, these indicators form the high-frequency picture of the industrial economy. ## Sources - https://ddindia.co.in/2026/10/indias-industrial-output-grows-6-7-in-september-led-by-manufacturing-and-electricity/ - https://www.finnovate.in/learn/blog/india-iip-september-2026-sector-wise-growth - https://www.freepressjournal.in/business/indias-industrial-production-grows-67-per-cent-in-september-manufacturing-electricity-lead - https://superkalam.com/current-affairs/29-10-2026/industrial-growth-slowed-to-4-month-low-of-6-7-in-sept-pg19-10973e59-1281-4def-8df9-d9b114a801b4 - https://www.cavalier.in/cds-ota-current-affairs/2026-08-28/iip-july-2026-new-series-2026 - https://www.theweek.in/wire-updates/business/2025/04/17/del53-biz-iip-timeline.html