India's Index of Industrial Production Records 5.1% Growth in May 2026
The Ministry of Statistics & Programme Implementation (MoSPI) released the Quick Estimates of the All India Index of Industrial Production (IIP) with base year 2022-23 for May 2026, showing a 5.1% year-on-year growth. This release supersedes the earlier WPI-based IIP 2022-23 series released on June 1, 2026, as MoSPI has adopted the Output Producer Price Index (Output PPI) as the deflator in place of WPI for item groups where output is collected in value terms.
Methodology Revision to Output PPI
The transition to Output PPI affects 234 out of the 463 item groups in the IIP basket, representing 36.02% of the total index weight. This change was implemented because Output PPI provides a more granular price structure than WPI, improves estimation of real output for value-based items, aligns with international best practices, and follows the recommendation of the Technical Advisory Committee on base revision of IIP. The revision also incorporates updated data from source agencies since April 2022 and addresses compilation issues in the Electricity Index sub-sectoral weights.
Sectoral Performance in May 2026
The Manufacturing sector grew by 5.5% year-on-year, with the index standing at 122.6 compared to 116.7 in May 2025. Electricity & Gas Supply showed strong growth of 9.9% with an index of 129.6, while Water Supply, Sewerage & Waste Management grew by 5.5% with an index of 145.1. Mining & Quarrying contracted by 1.6% with an index of 112.9.
Within Manufacturing, 16 out of 23 industry groups at NIC 2-digit level recorded positive growth. The top contributors were Manufacture of motor vehicles, trailers and semi-trailers (14.5% growth), driven by passenger cars, auto components, and commercial vehicles; Manufacture of electrical equipment (20.8% growth), driven by electrical apparatus, transformers, and UPS/solid-state drives; and Manufacture of basic metals (4.6% growth), driven by HR coils/sheets, HR plates, and bars/rods of alloy/stainless steel.
Use-Based Classification Performance
According to use-based classification, Capital Goods showed the strongest growth at 12.9% with an index of 135.3. Intermediate Goods grew by 5.8% (index 123.1), Infrastructure/Construction Goods by 5.9% (index 130.8), Primary Goods by 2.6% (index 119.6), Consumer Durables by 7.2% (index 120.4), and Consumer Non-durables by 3.6% (index 118.4). The top three positive contributors to IIP growth were Intermediate Goods, Capital Goods, and Primary Goods.
Comparative Annual Growth Rates
The revised IIP series with Output PPI shows annual growth rates of 6.8% in 2023-24, 5.7% in 2024-25, and 4.3% in 2025-26. Sectorally, Manufacturing grew at 7.1%, 6.0%, and 4.8% respectively over these years, while Mining & Quarrying grew at 2.2%, 2.8%, and 3.7%. Electricity & Gas Supply showed growth of 7.4%, 5.2%, and 0.8%, while Water Supply, Sewerage & Waste Management grew significantly at 17.8%, 11.9%, and 6.4%.
Use-based classification reveals Capital Goods grew at 10.1%, 7.9%, and 10.4% over the three years, while Infrastructure/Construction Goods grew at 10.4%, 6.8%, and 8.8%. Consumer Durables showed growth of 5.0%, 8.4%, and 3.1%, while Consumer Non-durables grew at 7.7%, 3.6%, and 0.8%.
The next IIP release for June 2026 is scheduled for Tuesday, July 28, 2026. Detailed data is available on the e-Sankhyiki portal of MoSPI.