India's Industrial Production Growth Accelerates to 7.3% in June 2026
India's Index of Industrial Production (IIP) recorded a 7.3% year-on-year growth in June 2026, showing significant acceleration from the 5.1% growth recorded in May 2026. The Quick Estimate of IIP stands at 123.1 against 114.7 in June 2025, indicating robust industrial activity across major sectors.
Sectoral Performance
The manufacturing sector, which carries the highest weight of 76.062% in the IIP basket, grew by 7.8% year-on-year in June 2026, with its index reaching 123.3. The electricity and gas supply sector demonstrated the strongest growth at 10.6%, reaching an index of 131.0. Mining and quarrying showed modest growth of 1.0% with an index of 110.0, while water supply, sewerage and waste management grew by 6.1% to reach 145.7.
Manufacturing Sector Breakdown
Within the manufacturing sector, 19 out of 23 industry groups at NIC 2-digit level recorded positive growth in June 2026 compared to June 2025. The top performers were manufacture of electrical equipment with exceptional growth of 34.0%, manufacture of motor vehicles, trailers and semi-trailers with 17.5% growth, and manufacture of food products with 10.8% growth. Specific item groups driving growth included electrical apparatus for switching or protecting electrical circuits, UPS and solid-state drives, end-face connectors for optical fibres and cables in electrical equipment; auto components, passenger cars, and commercial vehicles in vehicles; and tea, rice (other than basmati), and starch in food products.
Use-Based Classification
As per use-based classification, capital goods showed the strongest growth at 14.2% year-on-year in June 2026, with its index reaching 140.5. Intermediate goods grew by 9.3% to 124.2, infrastructure/construction goods increased by 7.5% to 132.9, and primary goods expanded by 4.9% to 119.5. Consumer durables grew by 7.7% to 119.8 while consumer non-durables increased by 4.9% to 115.4. The top three positive contributors to IIP growth were intermediate goods, primary goods, and capital goods.
Cumulative Performance and Revisions
For the April-June 2026 quarter, the cumulative IIP growth stood at 5.8% compared to the same period previous year. The manufacturing sector grew by 6.3% during this period, while electricity and gas supply expanded by 8.6%. The Quick Estimates for June 2026 were compiled at a weighted response rate of 86.7%, while the final revision for May 2026 incorporated updated data at a 93.1% response rate. The next IIP release for July 2026 is scheduled for Friday, 28th August 2026.