New Delhi: India's industrial production growth is expected to moderate to 6 per cent in September 2026, down from 8 per cent in August, according to a research report by Union Bank of India, news agency ANI reported on Sunday. The forecast comes ahead of the government's September Index of Industrial Production (IIP) data, scheduled for release on October 28.

Source: ANI via LatestLY

6%September IIP growth forecast
8%August IIP growth
2.2%Capital goods growth forecast
15.6%Electricity growth forecast

The sharpest slowdown is expected in capital goods — machinery and equipment used in production, watched as a sign of investment activity — where growth is projected at just 2.2 per cent, compared with 16.9 per cent in August. Consumer durables growth is also expected to slow to 3.1 per cent from 11.1 per cent, and manufacturing to 6.3 per cent from 9 per cent, according to the report, which was also cited by PTI.

Source: PTI via 7globe

Mining is expected to remain under pressure, with production projected to contract by 8 per cent after a 5.6 per cent decline in August. Electricity generation is the bright spot in the forecast, with growth expected to rise to 15.6 per cent from 12.3 per cent in August.

The bank said the expected moderation reflects slowing sequential momentum, held up in part by a favourable base effect, and added that high-frequency indicators suggest overall economic activity continued to stay strong in September 2026. In simple terms, yaani factories are still growing — just at a slower pace than in August. The official IIP figures on October 28 will confirm whether the forecast was accurate.