New Delhi | India’s industrial production registered a strong rebound in June 2026, with the Index of Industrial Production (IIP) growing 7.3% year-on-year, reflecting broad-based expansion across key sectors, particularly manufacturing and electricity. The latest data released by the Ministry of Statistics and Programme Implementation (MoSPI) indicates sustained momentum in the country’s industrial activity and investment cycle.
The June performance marks a significant improvement over the revised 5.1% growth recorded in May 2026, highlighting stronger economic activity across several industries.
Industrial Production Records Strong Growth
According to MoSPI, the Quick Estimate of the Index of Industrial Production (IIP) stood at 123.1 in June 2026, compared with 114.7 in June 2025, translating into an annual growth of 7.3%.
The increase was primarily driven by:
- Manufacturing: 7.8% growth
- Electricity and Gas Supply: 10.6% growth
- Mining and Quarrying: 1.0% growth
- Water Supply, Sewerage, Waste Management and Remediation Services: 6.1% growth
The manufacturing sector, which carries the largest weight in the IIP, remained the biggest contributor to overall industrial expansion.
Sector-wise Index Performance
The sectoral indices for June 2026 were reported as:
| Sector | Index Value |
|---|---|
| Mining and Quarrying | 110.0 |
| Manufacturing | 123.3 |
| Electricity | 131.0 |
| Water Supply, Sewerage, Waste Management & Remediation Services | 145.7 |
These figures reflect positive performance across all major industrial sectors.
Manufacturing Leads Industrial Expansion
Within the manufacturing sector, 19 out of 23 industry groups under the two-digit National Industrial Classification (NIC-2025) recorded positive growth compared with June 2025, demonstrating widespread improvement in industrial activity.
The top-performing manufacturing industries were:
- Manufacture of Electrical Equipment: 34.0% growth
- Manufacture of Motor Vehicles, Trailers and Semi-Trailers: 17.5% growth
- Manufacture of Food Products: 10.8% growth
These industries contributed significantly to the overall rise in industrial production.
Use-Based Classification Shows Healthy Investment Activity
The use-based classification of industrial output also reflected broad-based growth across categories.
Capital Goods
Output of capital goods increased by 14.2%, indicating continued strength in investment activity and expansion of industrial capacity.
Primary Goods
Production of primary goods rose by 4.9%, supported by steady activity in basic industries.
Intermediate Goods
The intermediate goods segment recorded a 9.3% increase, suggesting stronger demand from downstream manufacturing industries.
Infrastructure and Construction Goods
Output of infrastructure and construction goods expanded by 7.5%, reflecting continued momentum in infrastructure development and construction projects.
Consumer Goods
Both consumer categories registered positive growth:
- Consumer Durables: 4.9%
- Consumer Non-Durables: 4.9%
This indicates stable consumer demand during the month.
Data Collection and Revision
MoSPI stated that the estimates were prepared using a weighted response rate of 86.7% for the Quick Estimate of June 2026.
For the final revision of May 2026, the weighted response rate improved to 93.1% after additional information was received from source agencies.
The ministry also revised the May 2026 IIP growth upward to 5.1%, incorporating updated data submitted by reporting agencies.
Economic Significance
The strong industrial performance in June 2026 signals continued resilience in India’s economy, supported by:
- Robust manufacturing activity
- Double-digit growth in electricity generation
- Rising capital goods production, indicating sustained investment
- Broad-based expansion across most manufacturing industries
- Improved infrastructure and construction activity
- Stable consumer demand
The sharp increase in industrial production is expected to support overall economic growth, strengthen manufacturing output, and reinforce confidence in India’s ongoing industrial and infrastructure expansion.
Key Highlights
- India’s IIP grew by 7.3% in June 2026, up from 5.1% in May 2026.
- Manufacturing expanded by 7.8%, remaining the largest contributor to industrial growth.
- Electricity and gas supply recorded 10.6% growth.
- Mining and quarrying increased by 1.0%.
- Water supply, sewerage, waste management and remediation services grew by 6.1%.
- Electrical equipment manufacturing led all manufacturing industries with 34.0% growth.
- Capital goods output surged 14.2%, indicating continued investment momentum.
- 19 of 23 manufacturing industry groups recorded positive year-on-year growth.
- MoSPI revised May 2026 IIP growth to 5.1% based on updated information from reporting agencies.
The latest MoSPI data underscores the continued strength of India’s industrial sector, with manufacturing, electricity, and capital investment serving as the primary drivers of growth during June 2026.
