New Delhi: The Index of Industrial Production (IIP) has tanked to a four-month low on account of a dip in mining and quarrying, the latest government data shows. Headline industrial production growth slowed to 6.7% in September, from 8.0% in August. The quick estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) show industrial production growth at its lowest level since June, when it stood at 8.8%.The latest figures show that manufacturing growth eased to 7.6% in September 2026 from 8.6% in August 2026, year on year.Electricity and gas supply grew 11.2% in September 2026, compared with 12.3% in August. Mining and quarrying contracted by 6.2% in September, compared with a contraction of 4.6% in August. Water supply, sewerage and waste management grew 5.8% in September, down from 6.3% in August.The manufacturing figure shows a moderation, while mining has continued to contract, suggesting a deepening of the sector’s problems.The IIP growth rate for September 2025 was 4%, unchanged from the August 2025 quick estimate figure. Manufacturing had clocked a 4.8% growth rate over the previous month and mining had contracted slightly, by 0.4%.In the following month, October 2025, due to slow growth in the manufacturing sector along with contractions in electricity and consumer non-durables, growth in industrial production had fallen to a 14-month low of 0.4%.For September 2026, use-based (as opposed to sectoral) classification shows that growth in primary goods eased from 4.2% in August to 4.0% in September.Intermediate goods – products used to manufacture other products, such as steel used in automobile production, saw a more pronounced slowdown in the growth rate than primary goods – from 14.2% in August to 12.2% in September.According to the official release, iron ore production grew 18.4%, coal production grew 10.7% and steel production grew 4.9% year on year. This could point towards the impact of rising prices on intermediate goods production.Prices are determined by input cost variations (India imports large quantities of coking coal as well as finished steel), festival demand and the capacity of the Indian market to absorb price changes.