Data Alert
India IIP growth rises to 23-month high of 7.3% in June
This story was originally published at 18:02 IST on 28 July 2026
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--India Jun IIP growth 7.3%
--Informist Poll estimated Jun IIP growth at 5.9%
--India Jun IIP growth 7.3% vs 2.2% year ago
--India Apr-Jun IIP growth 5.8% vs 3.4% year ago
--India Jun mining, quarrying sector output growth 1.0% vs 4.1% year ago
--India Jun manufacturing sector output growth 7.8% vs 2.4% year ago
--India Jun electricity, gas supply sector output growth 10.6% vs -2.0% yr ago
--India Jun water supply sector output growth 6.1% vs 7.9% year ago
--India Jun primary goods output growth 4.9% vs 2.1% year ago
--India Jun capital goods output growth 14.2% vs 3.4% year ago
--India Jun intermediate goods output growth 9.3% vs 3.1% year ago
--India Jun infrastructure goods output growth 7.5% vs 6.6% year ago
--India Jun consumer durables output growth 7.7% vs 1.4% year ago
--India Jun consumer non-durables output growth 4.9% vs -2.0% year ago
--India Jun IIP growth of 7.3% highest in 23 months under new series
NEW DELHI – Growth in India's industrial output rose to a 23-month high in June, boosted by higher electricity production owing to higher seasonal demand and increase in manufacturing activities. Data released Tuesday by the statistics ministry showed factory output, as measured by the Index of Industrial Production, jumped to 7.3% in June under the new series.
At 7.3%, the growth in IIP was much quicker than estimated. Economists polled by Informist had estimated growth in India's industrial production at 5.9% in June. Industrial production had risen 2.2% in June 2025, as per the new series. The May print was also revised slightly downwards to 5.0% from 5.1?rlier. The IIP series uses the financial year 2022-23 (Apr-Mar) as the base year, compared with FY12 in the old series.
The industrial output surged to a 23-month high amid broad-based acceleration in growth across the four sectors between these months, albeit partly benefitting from a modest base, Aditi Nayar, chief economist at ICRA, said in a note. "While higher volume growth augurs well, margin compression owing to higher input costs is expected to constrain industrial GVA (gross value added) growth in the quarter."
Growth in production in the electricity and gas supply sectors rose to 10.6% in June from (-)2.0% a year ago and 10.3% in May. Electricity production rose 11.4% in June due to higher demand in the summer months while gas supply fell 0.1% in June due to supply chain disruptions amid the war in West Asia.
The manufacturing sector also pushed IIP growth in June, with the sector's output rising 7.8%, up from 2.4% a year ago and 5.2% in May. "Manufacturing output growth, in particular, witnessed a sharp uptick in June 2026, contributing as much as 199 basis points of the 235 bps uptick in the IIP growth relative to May 2026," Nayar said.
The water supply, sewerage, and waste management segment production rose 6.1% in June from 5.5% in May but slowed from 7.9% growth reported a year ago. The mining and quarrying sector output rose 1.0% in June from a fall of 1.4% in May but grew slower than 4.1% a year ago.
Within the six use-based classifications, the capital goods sector led the rise in June. Capital goods output rose 14.2%, but the growth was slower than 15.5% recorded in May. The production of infrastructure or construction goods grew 7.5% last month, from 6.6% in May and a year ago. According to Nayar, this suggests investment activity remained robust in the month, benefitting from the easing of tensions in West Asia as well as the large rainfall deficit seen in June that offered an extended period for activity.
The output in the primary goods segment rose 4.9% in June. Activity in the primary goods segment, which has the highest weight among the use-based categories, had risen 2.7% in May and 2.1% a year ago.
Production of intermediate goods also contributed to the overall industrial production growth with the segment's output rising 9.3% last month, from 5.8% in May and 3.1% a year ago. Consumer durables production rose 7.7% in June, steady from 8.0% in May. The output in the consumer non-durables segment rose 4.9% in June from (-)0.4% in May.
Industrial growth in Apr-Jun, the first quarter of the financial year 2026-27 (Apr-Mar), was at 5.8%, up from 3.4% in the same period of last year.
The following tables detail year-on-year changes in industrial output in June:
| June 2026 | May 2026 | June 2025 | |
| General | 7.3% | 5.0% | 2.2% |
| Mining and Quarrying | 1.00% | (-)1.4% | 4.1% |
| Manufacturing | 7.8% | 5.2% | 2.4% |
| Electricity and Gas Supply | 10.6% | 10.3% | (-)2.0% |
| Water Supply, Sewerage, and Waste Management | 6.1% | 5.5% | 7.9% |
| Primary goods | 4.9% | 2.7% | 2.1% |
| Capital goods | 14.2% | 15.5% | 3.4% |
| Intermediate goods | 9.3% | 5.8% | 3.1% |
| Infrastructure/construction goods | 7.5% | 6.6% | 6.6% |
| Consumer durables | 7.7% | 8.0% | 1.4% |
| Consumer non-durables | 4.9% | (-)0.4% | (-)2.0% |
Source: Ministry of Statistics and Programme Implementation
End
Reported by Shweta
Edited by Rajeev Pai
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