Informist Poll
India IIP growth seen at 6-month high of 5.9% in June
This story was originally published at 18:08 IST on 27 July 2026
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By Shweta
NEW DELHI – Growth in India's industrial output is seen rising to a six-month high in June, supported by continued expansion in factory production and a favourable base effect, according to economists. Industrial production growth, based on the new series, is likely to accelerate to 5.9% in June from 5.1% in May, according to the median in an Informist Poll of nine economists.
Industrial output, as measured by the Index of Industrial Production, grew 2.2% in June last year under the new IIP series, with 2022-23 (Apr-Mar) as the base year. Estimates in the poll range from 2.2% to 6.2%. The Ministry of Statistics and Programme Implementation will release the June IIP data Tuesday at 1600 IST.
IIP growth in June is expected to be higher than in May, supported by a favourable base effect that is likely to help sustain the growth momentum, according to economists at India Ratings and Research. Robust electricity generation and resilient manufacturing output are also expected to support industrial production growth, economists at Nirmal Bang Equities said in a note.
High-frequency indicators pointed to an acceleration in manufacturing activity. Motor vehicle production rose 27.4% year-on-year in June, sharply higher than the 13.3% increase in May. The number of e-way bills generated rose 14.5% on year in June, compared with 10.9% in May.
The output of India's nine core industries, which account for nearly 33% of the weight of the Index of Industrial Production, rose to a five-month high of 5.0% in June from 3.2% in May. Earlier this month, the Ministry of Commerce and Industry released the revised Index of Core Industries under the new series with FY23 as the base year. The new series tracks production of nine core industries compared with eight in the previous series.
"A temporary decline in crude prices due to the fragile resolution of the West Asia crisis then is also likely to have supported growth in June 2026," Megha Arora, economist at India Ratings, said. "The government's continued capex (capital expenditure) is likely to sustain the growth momentum of capital goods and infrastructure/construction goods."
The manufacturing Purchasing Managers' Index, however, eased to 54.2 in June from 55.0 in May.
The following is the summary of the poll on IIP growth in June:
| Organisation | IIP estimates |
| Bank of Baroda | 2.2% |
| STCI Primary Dealer | 5.0% |
| Nirmal Bang Equities | 5.5% |
| India Ratings and Research | 5.7% |
| ICRA | 5-6% |
| Sunidhi Securities | 6% |
| Standard Chartered | 6.0% |
| ICICI Bank | 6.2% |
| Emkay Global | 6.2% |
End
Edited by Saji George Titus
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