India Industrial Output Growth Slows More Than Expected

2026-10-28 10:44 By Larissa Caser 1 min. read

India’s industrial production growth slowed to 6.7% year-on-year in September 2026, down from a downwardly revised 7.8% in August and below market expectations of 7.2%.

Output growth in the manufacturing sector slowed to 7.6% from 8.6% in the prior month, driven by lower activity in leather and related products (4.5% vs 8.1%), wood and related products (-10.5% vs 8.6%), printing and reproduction of recorded media (-5.1% vs 4.8%), pharmaceuticals products (-8.9% vs 1.6%), rubber and plastics products (19.9% vs 21.4%), computer, electronic and optical products (7.3% vs 19.3%) and motor vehicles (19% vs 25.2%).

Production in mining and quarrying continued to decline, but at a faster pace of 6.2% after a 4.6% decrease.

Meanwhile, production growth also slowed in electricity and gas supply (11.2% vs 12.3%) and water supply, sewage and waste managment (6.2% vs 6.9%).



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India Industrial Output Growth Slows More Than Expected
India’s industrial production growth slowed to 6.7% year-on-year in September 2026, down from a downwardly revised 7.8% in August and below market expectations of 7.2%. Output growth in the manufacturing sector slowed to 7.6% from 8.6% in the prior month, driven by lower activity in leather and related products (4.5% vs 8.1%), wood and related products (-10.5% vs 8.6%), printing and reproduction of recorded media (-5.1% vs 4.8%), pharmaceuticals products (-8.9% vs 1.6%), rubber and plastics products (19.9% vs 21.4%), computer, electronic and optical products (7.3% vs 19.3%) and motor vehicles (19% vs 25.2%). Production in mining and quarrying continued to decline, but at a faster pace of 6.2% after a 4.6% decrease. Meanwhile, production growth also slowed in electricity and gas supply (11.2% vs 12.3%) and water supply, sewage and waste managment (6.2% vs 6.9%).
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