{
  "id": 10597491,
  "title": "Exports, rising power demand to support manufacturing growth despite rural weakness: ICICI Bank",
  "url": "https://urgent.news/2026/09/29/exports-rising-power-demand-to-support-manufacturing-growth-despite",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-29T02:57:13.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/policy/indias-manufacturing-growth-bolstered-by-exports-and-power-demand-amid-rural-weakness-says-icici-bank/articleshow/134554529.cms"
  },
  "original_language": "en",
  "account": "India's manufacturing growth is expected to remain buoyed by exports and a strengthening investment cycle, despite a below-normal monsoon potentially affecting rural demand, according to a report by ICICI Bank Research. Exports are anticipated to remain a strong catalyst for the manufacturing sector, while a surge in power demand signifies the maturation of the investment cycle as capital expenditure begins to improve. The report cautions that a weaker rural demand could put pressure on consumption, particularly for FMCG products. Despite this potential rural demand weakness, exports are projected to maintain their growth, thereby driving manufacturing expansion. The report's assessment aligns with data showing industrial production rising 8% year-on-year in August, up from 7.4% in July. Manufacturing expanded 9%, while electricity output increased 12.3%. Mining, however, contracted 5.6% during the month. ICICI Bank notes that the manufacturing expansion is broad-based, reflecting both domestic and external demand, with fourteen of 23 sectors accelerating in August. Electrical equipment, transport equipment, and motor vehicles led the growth, with outputs rising 30.9%, 25.3%, and 25.2%, respectively. Computer, electronic, and optical products also grew by 19.3%. The investment cycle is showing signs of strength, with capital goods production increasing 16.9% in August, attributed to government-led infrastructure spending and improving private-sector capital expenditure. Infrastructure and construction goods also grew 6.4%. Power demand presents another positive signal, with electricity generation rising 13.3% and renewable generation increasing 15.4%. However, the report suggests that the rise in power demand may also be influenced by the below-normal monsoon. ICICI Bank expects the export and investment cycle to continue supporting manufacturing growth, while a weak monsoon could potentially weigh on rural consumption. Consumer durables are already demonstrating stronger momentum than non-durables, indicating that the consumption improvement is currently more evident in discretionary goods.",
  "summary": "India's manufacturing sector is projected to grow, supported by increased exports and a strengthening investment cycle. Industrial production saw a notable year-on-year increase, with manufacturing rising 9 percent in August. However, the report highlights that a below-normal monsoon may negatively impact rural demand and consumption. Electrical equipment and transport sectors exhibited…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}