India’s industrial output recorded a strong recovery in June 2026, growing 7.3 per cent year-on-year, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The growth was supported by higher manufacturing activity, increased electricity generation and improvement in investment-linked sectors.

The latest growth rate was significantly higher than the 5.1 per cent expansion recorded in May 2026 and 2.2 per cent growth in June 2025. It also surpassed market expectations of around 5.6 per cent

Why did India’s industrial output growth improve in June 2026?

Manufacturing emerged as the biggest driver of industrial growth, with output rising 7.8 per cent in June compared to 5.2 per cent in May and 2.4 per cent during the same month last year.

Manufacturing accounts for nearly three-fourths of the total weight in the Index of Industrial Production (IIP). According to economists, the improvement was spread across several industries, with 19 out of 23 manufacturing groups reporting year-on-year growth.

Electrical equipment manufacturing recorded the highest growth among manufacturing categories, rising 34 per cent during the month. Production of motor vehicles, trailers and semi-trailers increased 17.5 per cent, while food product manufacturing grew 10.8 per cent.

How did investment and power sectors support industrial growth?

Investment-linked sectors showed continued momentum in June. Capital goods production increased 14.2 per cent, while intermediate goods grew 9.3 per cent and infrastructure and construction goods expanded 7.5 per cent.

The electricity and gas supply segment also boosted overall industrial performance, growing 10.6 per cent in June. Electricity generation increased 11.4 per cent year-on-year, supported mainly by higher non-renewable power production.

The mining sector also returned to growth, expanding 1 per cent after contracting in May. Metallic minerals recorded a sharp rise of 38.9 per cent during the month.