Manufacturing, power lift June IIP growth to 7.3pc; capital goods output jumps 14.2pc

THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 28, 2026

India's industrial production accelerated to a nine-month high of 7.3 per cent year-on-year in June 2026, driven by a sharp expansion in manufacturing and robust growth in electricity and gas supply, according to the Quick Estimates of the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday.

The growth marks a significant improvement from the 5.1 per cent expansion recorded in May, signalling strengthening industrial activity amid broad-based gains across sectors and use-based categories.

The Quick Estimate of the IIP stood at 123.1 in June, compared with 114.7 in the same month a year earlier. Manufacturing, which accounts for the largest share of the index, expanded 7.8 per cent, while electricity and gas supply grew 10.6 per cent. Water supply, sewerage and waste management posted 6.1 per cent growth, whereas mining and quarrying registered a modest 1.0 per cent increase.

Within manufacturing, 19 of the 23 industry groups recorded positive growth over June 2025, underscoring the breadth of the recovery. The strongest gains were led by the manufacture of electrical equipment, which surged 34.0 per cent, followed by the manufacture of motor vehicles, trailers and semi-trailers at 17.5 per cent, and the manufacture of food products at 10.8 per cent.

The use-based classification pointed to sustained investment activity, with Capital Goods recording the fastest growth at 14.2 per cent. Intermediate Goods expanded 9.3 per cent, Consumer Durables grew 7.7 per cent, and Infrastructure and Construction Goods rose 7.5 per cent. Primary Goods and Consumer Non-durables each registered 4.9 per cent growth. Intermediate Goods, Primary Goods and Capital Goods emerged as the largest contributors to the overall increase in industrial output during the month.

For the April-June quarter of 2026-27, industrial production grew 5.8 per cent over the corresponding period of the previous fiscal year. Manufacturing expanded 6.3 per cent, electricity and gas supply rose 8.6 per cent, and water supply, sewerage and waste management increased 6.0 per cent. Mining and quarrying, however, contracted 1.4 per cent during the quarter.

MoSPI said the Quick Estimates for June were compiled with a weighted response rate of 86.7 per cent, while the final revised estimates for May were based on a 93.1 per cent response rate. The ministry will release the IIP data for July 2026 on August 28, 2026.