India’s industrial output quickens to 7.3% in June from 5.1% in May as manufacturing, electricity growth accelerates

ET logo


India’s industrial output accelerated to 7.3% year-on-year in June 2026, up from a revised growth of 5.1% in May, driven by a sharp expansion in manufacturing and strong growth in electricity and gas supply, according to the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday.

The growth was led by manufacturing, which expanded 7.8%, while electricity and gas supply grew 10.6%. Mining and quarrying recorded a modest increase of 1%, and water supply, sewerage and waste management rose 6.1%.

Also Read: India’s forex reserves rise $1.08 billion to $676.237 billion in week ended July 17

The Quick Estimate of the IIP stood at 123.1 in June 2026, compared with 114.7 in June 2025.

Within manufacturing, 19 of the 23 industry groups recorded positive growth in June.


The top three contributors to manufacturing growth were “Manufacture of electrical equipment”, which grew 34%, “Manufacture of motor vehicles, trailers and semi-trailers”, which expanded 17.5%, and “Manufacture of food products”, which rose 10.8%.

According to the ministry, electrical apparatus for switching or protecting electrical circuits, UPS and solid-state drives, and end-face connectors for optical fibres and cables were among the key contributors to growth in the electrical equipment segment.In the motor vehicles segment, auto components, spares and accessories, passenger cars and commercial vehicles were the major contributors to growth.

Within the food products category, tea, rice (other than basmati) and starch were among the major contributors to the sector’s expansion.

Based on the use-based classification, capital goods output registered the fastest growth at 14.2%, indicating sustained investment activity. Intermediate goods output increased 9.3%, infrastructure and construction goods rose 7.5%, and consumer durables grew 7.7%. Primary goods and consumer non-durables each recorded growth of 4.9%.

Also Read: Weak investments, higher oil prices to slow India’s GDP growth to 6.6% in FY27: Poll

The ministry said intermediate goods, primary goods and capital goods were the largest contributors to overall industrial production growth during June.

The data release also marks a significant revision in the methodology used to compile the industrial output index. MoSPI said it has adopted the Output Producer Price Index (Output PPI) as the deflator for the new IIP series with the base year of 2022-23, replacing the Wholesale Price Index (WPI).

The switch affects 234 of the 463 item groups in the IIP basket, accounting for 36.02% of the overall index weight. The ministry said the revised PPI-based series supersedes the earlier WPI-based IIP 2022-23 series that was released on June 1.

According to MoSPI, the Output PPI offers a more detailed price structure and improves the measurement of real output for items where production data is reported in value terms. The ministry said the change is also aligned with international best practices and recommendations made by the Technical Advisory Committee on the base revision of the IIP.



Source link

Online Company Registration in India

Leave a Reply

Your email address will not be published. Required fields are marked *