More Stories

Informist, Friday, Sept. 25, 2026

 

By Radhika Tiwari

 

NEW DELHI – Growth in India's industrial output, as measured by the Index of Industrial Production, is likely to have risen in August due to a favourable base effect. Industrial growth during the month is pegged at 7.0%, according to the average of estimates in an Informist poll of 10 economists.

 

Industrial output had risen 6.7% in July and 4.7% a year earlier. Estimates in the poll ranged from 6.0% to 8.5%. The Ministry of Statistics and Programme Implementation will release IIP data for August on Monday at 1600 IST.

 

Industrial growth in August is likely to have been supported by electricity output and construction-linked sectors, Nirmal Bang Equities Pvt. Ltd. said in a note. According to the Index of Core Industries, electricity generation rose 11.6% on year in August, while cement output increased 12.5%. The Index of Core Industries, which has a weight of 32.88% in the Index of Industrial Production, rose 4.8% in August, down from 5.0% in July.

 

At 7.0% growth, the overall index is projected to decline 2% sequentially in August. The Index of Industrial Production had declined 2.4% sequentially in August last year.

 

However, most high-frequency indicators pointed to a slowdown in manufacturing activity in August. The HSBC India Manufacturing Purchasing Managers' Index decelerated to a five-year low of 52.8 in August from 53.5 in July. "The output index fell to its lowest level since August 2021, signalling that production is still expanding but at a markedly slower pace," Pranjul Bhandari, chief India economist at HSBC, said in a report.

 

Growth in automobile production in August fell to 16.9% on year from 24.8% in July, data from the Society of Indian Automobile Manufacturers showed. The number of e-way bills generated rose 7.7% on year in August, compared with the 6.0% growth in July, according to data from the Goods and Services Tax Network.

 

Nirmal Bang expects the Reserve Bank of India's Monetary Policy Committee to hike the repo rate by 25 basis points in October, against the backdrop of resilient growth, a rate hike by the US Federal Reserve, and early signs of broad-based inflation.

 

Following is the summary of the poll on IIP growth in August:

 

Organisation	IIP growth estimate
ICRA	6%
Bank of Baroda	6-6.5%
ANZ Banking Group	6.5%
Nirmal Bang Equities	6.6%
India Ratings and Research	7%
ICICI Bank	7.2%
Standard Chartered Bank	7.3%
STCI Primary Dealer	7.6%
ICICI Securities Primary Dealership	8%
Sunidhi Securities	8.5%

 

End

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.