India’s IIP Surges to 7.3% in June, Fastest Growth in Nearly Two Years
Within the manufacturing sector, 19 out of 23 industry groups have recorded positive growth in June 2026 over June 2025.
New Delhi: Amid the ongoing escalation of the West Asia war, India’s industrial output significantly rose to 7.3 per cent in June compared to 5.1 per cent in the preceding month, expanding at its fastest pace in nearly two years. The reason for this expansion is due to the improved performance in the manufacturing sector and strong growth of the electricity and gas supply sector, the government said on Tuesday.
As per the government, this is the third monthly data for industrial output or index of industrial production (IIP) based on the new series. “In June 2026, IIP recorded a 7.3 per cent year-on-year growth, supported by 7.8 per cent growth in manufacturing sector and strong growth of 10.6 per cent in electricity & gas supply sector,” the National Statistics Office (NSO) said in a release.
“The IIP growth rate for the month of June 2026 is 7.3 per cent against 5.1 per cent (quick estimate released in June) in the month of May 2026,” it stated, adding that the revised estimate of IIP for the month of May is 5 percent.
The NSO data further said that the production of mining & quarrying rose by 1 per cent, manufacturing by 7.8 per cent, electricity & gas supply and water supply by 10.6 per cent, and sewerage & waste management by 6.1 per cent in June 2026 compared to the year-ago period.
“Within the manufacturing sector, 19 out of 23 industry groups have recorded positive growth in June 2026 over June 2025. The top three positive contributors for the month of June 2026 are manufacture of electrical equipment (34 per cent), manufacture of motor vehicles, trailers and semi-trailers (17.5 per cent), and manufacture of food products (10.8 per cent),” it said.
By use-based classification, the NSO data further said that capital goods recorded the steepest growth at 14.2 per cent, followed by intermediate goods at 9.3 per cent, infrastructure/construction goods at 7.5 per cent, consumer durables at 7.7 per cent and both primary goods and consumer non-durables goods at 4.9 per cent each. “Intermediate goods, primary goods and capital goods were the top three contributors to overall IIP growth for the month,” it added.
