India’s industrial production grew 7.3% in June 2026, sharply higher than the 5.1% estimate recorded in May 2026, according to government data released Tuesday. The Quick Estimate of the Index of Industrial Production (IIP) stood at 123.1 in June, up from 114.7 in the same month last year.
According to the Ministry of Statistics and Programme Implementation (MoSPI) data, all four broad sectors posted positive growth. Electricity and Gas Supply led with 10.6% growth, followed by Manufacturing at 7.8%, Water Supply, Sewerage and Waste Management at 6.1%, and Mining and Quarrying at 1.0%. The sector-wise indices for June stood at 110 for Mining and Quarrying, 123.3 for Manufacturing, 131 for Electricity and Gas Supply and 145.7 for Water Supply, Sewerage and Waste Management, the date stated.
The indices for June stood at 119.5 for Primary Goods, 140.5 for Capital Goods, 124.2 for Intermediate Goods, 132.9 for Infrastructure/Construction Goods, 119.8 for Consumer Durables and 115.4 for Consumer Non-Durables.
Within manufacturing, 19 of 23 industry groups recorded positive year-on-year growth. Electrical equipment manufacturing topped the list with 34% growth, driven by switchgear and circuit breakers, UPS and solid-state drives and optical fibre connectors, the data revealed.
Motor vehicles, trailers and semi-trailers followed with 17.5% growth, powered by auto components and spares, passenger cars and commercial vehicles. Food products manufacturing grew 10.8%, with tea, non-basmati rice and starch as the key contributors.
By use-based classification, Capital Goods recorded the steepest growth at 14.2%, followed by Intermediate Goods at 9.3%, Infrastructure/Construction Goods at 7.5%, Consumer Durables at 7.7% and both Primary Goods and Consumer Non-Durables at 4.9% each. Intermediate Goods, Primary Goods and Capital Goods were the top three contributors to overall IIP growth for the month.
Change in methodology
The MoSPI has adopted the Output Producer Price Index (Output PPI) as the deflator for the new IIP series with the base year 2022-23, replacing the Wholesale Price Index (WPI).
The revised methodology applies to 234 of the 463 item groups in the IIP basket, which together account for 36.02% of the index’s total weight. MoSPI said the new Output PPI-based series replaces the WPI-based IIP 2022-23 series that was released on June 1.
The ministry said the Output PPI provides a more granular measure of prices and enables a more accurate assessment of real output for products whose production is reported in value terms. It added that the shift aligns India’s industrial output measurement with international best practices and recommendations of the Technical Advisory Committee on the IIP base revision.