India's factory output rises 7.3% in June on manufacturing boost
What's the story
India's industrial output witnessed a significant jump, growing at a rate of 7.3% year-on-year in June 2026. The growth rate was higher than the revised figure of 5.1% recorded in May, as per data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday. The surge is largely attributed to a robust expansion in manufacturing and strong growth in electricity and gas supply sectors.
Sector performance
Manufacturing sector leads the growth
The manufacturing sector led the growth with an expansion of 7.8%, while the electricity and gas supply sector grew by 10.6%.
Mining and quarrying saw a modest increase of 1%, and water supply, sewerage, and waste management services rose by 6.1%.
The Quick Estimate of the Index of Industrial Production (IIP) stood at 123.1 in June this year, compared to last year's figure of 114.7 for the same month.
Manufacturing boost
Positive growth in 19 out of 23 manufacturing industry groups
Out of 23 industry groups in the manufacturing sector, 19 reported positive growth in June.
The top contributors to this growth were 'Manufacture of electrical equipment' (34%), 'Manufacture of motor vehicles, trailers and semi-trailers' (17.5%), and 'Manufacture of food products' (10.8%).
Key drivers for the electrical equipment segment's growth included electrical apparatus for switching or protecting electrical circuits, UPS and solid-state drives as well as end-face connectors for optical fibers and cables.
Methodology revision
MoSPI revises methodology for compiling industrial output index
Along with the data release, MoSPI has also revised the methodology for compiling the industrial output index.
The ministry has replaced the Wholesale Price Index (WPI) with the Output Producer Price Index (Output PPI) as a deflator for its new IIP series with a base year of 2022-23.
This change impacts 234 out of 463 item groups in the IIP basket, accounting for 36.02% of total index weightage.