Indian industrial production to grow by five percent in May 2026

According to data released by the Ministry of Statistics and Program Implementation on Tuesday, June 30, India's industrial output, as measured by the Industrial Production Index (IIP), increased by 5.1 percent in May 2026 on the back of improvements seen in electricity generation and manufacturing.

The data is not comparable with the data for the corresponding month of the previous year, since the base year of the new IIP series was updated to 2022-23, during the previous year

Electricity and gas supply was the fastest growing core sector, recording growth of 9.9 percent in May 2026, driven by elevated temperatures as well as a low base.

Manufacturing continued to be a key driver of industrial activity, with 16 of the 23 industrial groups showing positive growth compared to the previous year, the ministry said in a statement.

The highest growth was recorded in the production of electrical equipment - 20.8 percent, followed by cars, trailers and semi-trailers - 14.5 percent and base metals - 4.6 percent. The increased production of passenger cars, commercial vehicles, automotive components, switchgear, transformers, and steel products has made a significant contribution to the sector's performance.

The production of capital goods recorded the strongest growth at 12.9 percent, indicating continued investment activity. Durable consumer goods increased by 7.2 percent, infrastructure and construction goods – by 5.9 percent, intermediate goods – by 5.8 percent, non–durable consumer goods - by 3.6 percent and raw materials – by 2.6 percent.