Industrial momentum in the country witnessed a decisive acceleration in August 2026, supported by robust factory floor activity across key manufacturing verticals. According to the latest official data released on Monday, the Index of Industrial Production (IIP) expanded by 8 percent on an annual basis. This follows a revised industrial expansion of 7.4 percent in July, underlining sustained strength in core industrial operations.
Sector Breakdown: Manufacturing and Power Surge While Mining Contracts
Data from the National Statistics Office (NSO) indicates that the core manufacturing division recorded an annual expansion of 9 percent during August. The electricity and gas supply segment posted even stronger gains, rising by 12.3 percent over the period. Conversely, the mining and quarrying sector struggled, contracting by 5.6 percent during the month after having registered a 15.8 percent surge in the same month a year earlier. Alongside the August release, the government revised July's provisional growth figure upward from an initial estimate of 6.7 percent to 7.4 percent.
Cumulative Expansion Reaches 6.7 Percent Across Five Months
During the April to August stretch of the current financial year 2026-27, total industrial output registered a cumulative growth rate of 6.7 percent. This marks a notable improvement over the corresponding five-month phase of the previous financial year, when growth stood at 4.2 percent. The broadening momentum across the manufacturing landscape was evident as 18 of the 23 monitored industry groups posted positive growth figures in August.
Automotive and Electrical Segments Deliver Standout Gains
Specific sub-sectors within manufacturing drove the bulk of August's strong print. Production of motor vehicles, trailers, and semi-trailers surged by 25.2 percent, supported by active lines in passenger cars, commercial vehicles, auto components, spares, and accessories. Manufacturers of electrical equipment posted an even steeper growth rate of 30.9 percent. In addition, other transport equipment output expanded by 25.3 percent, a category spanning two-wheelers, railway rolling stock, and associated structural assemblies.
Use-Based Output: Capital and Intermediate Goods Register Double-Digit Growth
Under the use-based classification framework, capital goods logged a sharp growth rate of 16.9 percent, signalling solid business investment in machinery and productive capacity. Intermediate goods expanded by 13.7 percent, while consumer durables production advanced by 11.1 percent. Rounding out the categories, infrastructure and construction goods output grew by 6.4 percent, primary goods edged up by 3.5 percent, and consumer non-durables increased by 2.1 percent.
