Industrial Output Grows 7.3% in June
India’s industrial production expanded by 7.3% year-on-year in June 2026, recording its fastest growth in 22 months. The improvement was driven by stronger manufacturing activity, higher electricity generation and a recovery in mining output.
Manufacturing Growth Drives Industrial Output
Manufacturing production rose by 7.8% in June, accelerating from the revised 5.2% growth recorded in May. The sector carries the highest weight in the Index of Industrial Production and was the main contributor to the overall increase.
Electricity and gas supply output grew by 10.6%, compared with 10.3% in the previous month. Mining activity returned to growth, expanding by 1% after contracting by a revised 1.4% in May.
The June performance exceeded market expectations and was also supported by a favourable base, as industrial output had grown by only 2.2% in June 2025.
Capital Goods Output Rises 14.2%
Capital goods production increased by 14.2%, indicating continued investment in machinery, equipment and industrial capacity. However, the growth rate was slightly lower than the revised 15.5% recorded in May.
Consumer durables, including vehicles, household appliances and electronic products, grew by 7.7%. The expansion reflected sustained demand for manufactured consumer goods.
The latest figures suggest that domestic industrial activity remained resilient despite uncertainty surrounding global trade, energy prices and geopolitical tensions.
Industrial Growth Reaches 5.8% in Q1
Industrial production increased by 5.8% during the April-June quarter of the 2026-27 financial year. This was higher than the 3.4% growth recorded during the corresponding quarter of the previous year.
The stronger first-quarter performance was supported by manufacturing, electricity generation, government capital expenditure and continued domestic consumption.
