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Industrial Growth May Ease to 6% in September as Capital Goods, Mining Lose Steam
Sentiment: NeutralHigh Priority
What Happened?
India's industrial production growth is expected to slow to 6% in September 2026, down from 8% in August, due to declines in capital goods and mining output. The official Index of Industrial Production data will be released on October 28.
Key points
- Industrial production growth is projected to slow to 6% in September from 8% in August.
- Capital goods production is expected to grow by only 2.2% in September, down from 16.9% in August.
- Manufacturing growth is forecasted to ease to 6.3% in September from 9% in August.
- Mining output is expected to contract by 8% in September, compared to a 5.6% decline in August.
- Electricity generation is projected to increase by 15.6% in September from 12.3% in August.
- High-frequency indicators show continued strength in vehicle sales and infrastructure goods.
Key insights
- The decline in capital goods production may signal reduced investment in industrial capacity.
- Weak monsoon and supply disruptions could further strain rural demand and manufacturing output.
- Continued strength in electricity generation may offset some declines in other sectors.
Why it matters
The slowdown in industrial growth could impact investment decisions and economic forecasts.
Tags
Entities
Union Bank of India· OrganizationIndia· Country
Source
Times of India
