India's industrial production accelerates to 7.3% in June

India's industrial output saw a significant acceleration in June 2026, with the Index of Industrial Production (IIP) growing by 7.3% year-on-year. This marks a notable increase from the revised 5.0% growth recorded in May 2026, indicating a strengthening industrial sector.

The robust performance was primarily fueled by strong gains in the manufacturing sector, which expanded by 7.8%, and the electricity and gas supply sector, which surged by 10.6%. These two key areas were the main drivers behind the overall IIP growth for the month, according to a statement from the Ministry of Statistics & Programme Implementation.

Within the manufacturing domain, a broad-based recovery was observed, with 19 out of 23 industry groups at the NIC 2-digit level reporting positive growth in June 2026 compared to the same period in the previous year. Leading the charge were the manufacture of electrical equipment, which saw a substantial 34.0% increase, followed by motor vehicles, trailers, and semi-trailers at 17.5%, and food products at 10.8%.

The Ministry's release also detailed growth figures for other sectors: mining and quarrying grew by 1.0%, electricity and gas supply by 10.6%, and water supply, sewerage, and waste management by 6.1%. The Quick Estimate of the IIP stood at 123.1 in June 2026, compared to 114.7 in June 2025.

Analyzing the IIP by Use-Based Classification, the data revealed strong growth across various categories. Primary goods increased by 4.9%, capital goods by 14.2%, intermediate goods by 9.3%, and infrastructure/construction goods by 7.5%. Consumer durables saw a 7.7% rise, while consumer non-durables grew by 4.9%. Intermediate goods, primary goods, and capital goods were identified as the top three contributors to the overall IIP growth during the month.