India’s industrial output as measured by the index of industrial production (IIP) grew by 5.1 percent in May 2026 amid improvements seen in electricity generation and manufacturing, according to data released by the ministry of statistics and program implementation on Tuesday, June 30.
The data is not comparable with the data for the corresponding month of the previous year because the base year of the new IIP series was updated to 2022-23, in course of the past year.
Electricity and gas supply was the fastest-growing major sector, recording 9.9 percent growth in May 2026, driven by elevated temperatures as well as a low base.
Manufacturing continued to be the key driver of industrial activity, with 16 out of 23 industry groups recording positive growth over the previous year, the ministry said in a statement.
The highest growth was recorded in the manufacture of electrical equipment at 20.8 percent, followed by motor vehicles, trailers and semi-trailers at 14.5 percent, and basic metals at 4.6 percent. Higher production of passenger cars, commercial vehicles, auto components, electrical switchgear, transformers and steel products contributed significantly to the sector’s performance.
Capital goods output recorded the strongest growth at 12.9 percent, indicating continued investment activity. Consumer durables grew by 7.2 percent, infrastructure and construction goods by 5.9 percent, intermediate goods by 5.8 percent, consumer non-durables by 3.6 percent, and primary goods by 2.6 percent.
