Key Details
The National Statistics Office's Quick Estimates show stronger industrial activity in June 2026, with manufacturing remaining the principal growth driver and investment-oriented sectors recording robust expansion.
Key Area | June 2026 Update |
|---|---|
Overall Industrial Growth | IIP grew 7.3% year-on-year, up from 5.1% in May; the index reached 123.1. |
Manufacturing Performance | Manufacturing output increased 7.8%, with 19 of 23 industry groups recording positive growth. |
Utilities Growth | Electricity & Gas Supply grew 10.6%, while Water Supply, Sewerage & Waste Management expanded 6.1%. |
Investment Indicators | Capital Goods grew 14.2%, followed by Intermediate Goods (9.3%) and Infrastructure & Construction Goods (7.5%). |
Leading Manufacturing Industries | Electrical equipment (34.0%), motor vehicles (17.5%) and food products (10.8%) recorded the highest growth. |
Industrial Growth Strengthened Across Manufacturing and Utilities
The National Statistics Office's Quick Estimates show that India's industrial production accelerated to 7.3% year-on-year in June 2026, compared with 5.1% in May. Manufacturing remained the principal driver, expanding 7.8%, while Electricity & Gas Supply recorded the fastest growth among the major industrial sectors at 10.6%. Water Supply, Sewerage and Waste Management also registered positive growth, whereas Mining & Quarrying expanded more modestly by 1.0%.
Manufacturing Growth Was Broad-Based
Industrial expansion extended across most manufacturing activities, with 19 of the 23 manufacturing industry groups recording positive growth. The strongest-performing industries were electrical equipment (34.0%), motor vehicles, trailers and semi-trailers (17.5%), and food products (10.8%). Higher production of electrical equipment, automobiles, auto components and processed food products contributed significantly to overall manufacturing growth.
Capital Goods Continue to Signal Investment Momentum
Use-based estimates indicate continued strength in investment-oriented production. Capital Goods recorded the fastest growth among all use-based categories at 14.2%, followed by Intermediate Goods (9.3%) and Infrastructure & Construction Goods (7.5%). Consumer demand also remained positive, with Consumer Durables growing 7.7% and Consumer Non-Durables 4.9%, suggesting that industrial growth was supported by both investment and consumption.
What Is the Index of Industrial Production (IIP)?
The Index of Industrial Production (IIP) is India's principal high-frequency indicator of industrial activity, compiled monthly by the National Statistics Office (NSO). Using 2022–23 as the base year, it measures changes in production across Mining & Quarrying, Manufacturing, Electricity & Gas Supply, and Water Supply, Sewerage & Waste Management. The monthly Quick Estimates are revised as additional production data become available.
Policy Relevance
Manufacturing continues to anchor industrial growth. Expansion across most manufacturing industries indicates that growth is becoming more broad-based rather than concentrated in a few sectors.
Capital goods growth points to sustained investment activity. Strong expansion in investment-oriented industries suggests continued capacity creation and industrial modernisation.
Utility sectors are supporting industrial expansion. Robust growth in electricity and gas supply reflects the importance of reliable infrastructure in sustaining manufacturing activity.
The IIP remains an important leading indicator. Monthly industrial production data help policymakers monitor economic momentum and assess the effectiveness of manufacturing and infrastructure policies.
Follow the Full Release Here: MoSPI: Quick Estimates of Index of Industrial Production and Use-Based Index for June 2026