Vehicles and electrical gear drove 37% of September's industrial growth

Economy No. 103 29 October 2026 · 2 min read · By Pranami Hayaran

India's industrial output grew 6.7% in September 2026 from a year ago, down from 7.8% in August, according to MoSPI's first estimate. But the growth was not spread evenly. Just 2 industries, together making up 9.6% of the index, drove 37% of the increase.

The index of industrial production (IIP) measures monthly output from India's mines, factories and power plants. Each industry gets a weight based on its share of the economy's value added in 2022-23.

In September, electrical equipment grew 33.9% and motor vehicles 19.0%. Together, they contributed 37% of the rise in industrial output. This is not a one-off: since April, they have contributed at least 28% of the monthly increase every time.

Other parts of industry were weaker. Everyday consumer goods, such as milk, edible oil and medicines, grew just 1.4%. Mining of non-metallic minerals fell 29.2%, dragging overall growth down by 1 percentage point.

The headline 6.7% growth therefore looks stronger than the broader picture. Without vehicles and electrical equipment, the remaining 90% of the index grew just 4.7%, with everyday consumer goods barely growing.

2 stacks: in the IIP's weights electrical equipment is 3.2%, motor vehicles 6.4% and the rest 90.4%; in September 2026's rise on a year ago electrical equipment gave 17.8%, motor vehicles 19.3% and the rest 62.9%.

6 stacks, April to September 2026, of the IIP's rise on a year ago: electrical equipment gave 0.9 to 1.6 points and motor vehicles 0.9 to 1.9 points each month, out of rises of 5.5 to 10.1 points.

Bars of September 2026 growth by use: intermediate goods 12.2%, capital goods 10.4%, infrastructure and construction goods 7.2%, consumer durables 6.0%, primary goods 4.0% and consumer non-durables 1.4%.

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