2026.10.2810:44:33UTC+00India Industrial Output Growth Slows More Than Expected

India’s industrial production growth eased 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%.

Manufacturing output growth slowed to 7.6% from 8.6% in the previous month, reflecting weaker activity in several segments: 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%), pharmaceutical 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%).

Output in mining and quarrying continued to contract, with the pace of decline accelerating to 6.2% after a 4.6% drop in August. At the same time, growth also moderated in electricity and gas supply (11.2% vs 12.3%), as well as in water supply, sewerage and waste management (6.2% vs 6.9%).