India’s industrial output rose 7.3% year-on-year in June 2026, accelerating from 5.1% in May, according to MoSPI’s Quick Estimates of the Index of Industrial Production (IIP). Manufacturing expanded 7.8%, electricity and gas supply surged 10.6%, and capital goods grew 14.2% — the highest among use-based categories. For April–June 2026–27, IIP growth was 5.8%, though mining contracted 1.4%. The June data reflects an 86.7% response rate; July’s figures are due August 28, 2026.
According to ddindia.co.in, India’s industrial production grew 7.3% year-on-year in June 2026, accelerating from 5.1% in May and marking the strongest monthly expansion since early 2025. The Quick Estimates of the Index of Industrial Production (IIP), released by the Ministry of Statistics and Programme Implementation (MoSPI), recorded an IIP value of 123.1 in June 2026, up from 114.7 in June 2025.
Sectoral Performance Driven by Manufacturing and Energy
Manufacturing — which accounts for over 77% of total industrial output — expanded 7.8% year-on-year in June 2026. Electricity and gas supply surged 10.6%, while water supply, sewerage and waste management rose 6.1%. Mining and quarrying registered modest growth of 1.0%. The MoSPI noted that 19 of the 23 industry groups within manufacturing posted positive growth compared to June 2025.
Top Growth Contributors
Three manufacturing subsectors led overall gains: manufacture of electrical equipment grew 34.0%, motor vehicles and trailers rose 17.5%, and food products increased 10.8%. These three categories collectively accounted for nearly half of the total manufacturing growth. Within use-based classification, capital goods registered the highest expansion at 14.2%, followed by intermediate goods (9.3%) and consumer durables (7.7%). Infrastructure and construction goods grew 7.5%, while primary goods and consumer non-durables both rose 4.9%.
Quarterly Trends and Data Reliability
For the April–June quarter of fiscal year 2026–27, overall IIP growth stood at 5.8% year-on-year. Manufacturing grew 6.3% during the quarter, electricity and gas supply advanced 8.6%, and water supply, sewerage and waste management rose 6.0%. In contrast, mining and quarrying contracted 1.4% over the same period. MoSPI stated the June 2026 Quick Estimates were compiled at a weighted response rate of 86.7%, while the final revised estimates for May 2026 reflected a 93.1% response rate.
Forward Outlook and Reporting Schedule
The Ministry of Statistics and Programme Implementation is scheduled to release the IIP data for July 2026 on August 28, 2026. This follows the publication timeline established for the official index, which relies on factory-level reporting from over 1,000 enterprises across 68 industries. Analysts note that sustained double-digit growth in capital goods — now at 14.2% — signals strengthening investment intent and improving capacity utilization across core industrial segments, particularly in power infrastructure and electric vehicle component manufacturing.
Source: ddindia.co.in
Compiled from international media by the SCI.AI editorial team.
Done reading? Ask SCI.AI your follow-up questions
Answers grounded in our tariff knowledge graph and in-house reporting. Guests: 3 questions/day — free accounts: 30/week.
