India's August IIP rises 8% on strong manufacturing and power

India’s industrial output, as measured by the IIP, accelerated in August to an 8.0% year-on-year rise, driven by robust performance in manufacturing at 9.0% and a strong 12.3% expansion in electricity and gas supply, while the mining sector remained a drag, shrinking 5.6% as rains and other factors weighed on extraction^12,9. The most influential drivers within manufacturing included electrical equipment surging 30.9%, other transport equipment rising 25.3%, and motor vehicles advancing 25.2%, with 18 of 23 manufacturing groups reporting gains and a broad-based upturn that suggested healthier demand across consumer and capital goods segments^7,9.

Capital goods and intermediate goods demonstrated sustained momentum, underscoring renewed investment activity and construction demand, alongside a double-digit rise in consumer durables and support from infrastructure goods that helped broaden the growth picture^10,16,11.

The August print marks the fifth monthly release under the new IIP base, with the index standing at 123.3, reinforcing a three-month streak of 8% or more growth in manufacturing that has characterized the current expansion^6,11.

This broad-based strength, if maintained, could lift factory activity into the upcoming festive period and influence investor expectations, particularly as July’s figure was revised higher to 7.4%, signaling a resilient momentum across manufacturing and linked sectors^6,11.