India's Index of Industrial Production (IIP) growth in March stood at 5.1% in May, bolstered by high electricity and gas production.
Notably, the Ministry of Statistics and Programme Implementation (MoSPI) has revised the base year for Index of Industrial Production (IIP) from 2011–12 to 2022–23. This is the second set of data under the revised base year.
Manufacturing production increased 5.5% year-on-year, compared with 6.1% month-on-month. On the other hand, mining production declined 1.6% year-on-year in May, though the contraction narrowed compared with a 3.8% month-on-month decline.
Manufacturing production grew 5.5% year-on-year in May Electricity output increased 9.9%, improving significantly from 4.6% in April, while water supply output rose 5.5% against 6.6% month-on-month.
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The top three positive contributors for the month of May 2026 under manufacturing were – Manufacture of motor vehicles, trailers and semi-trailers (14.5%), Manufacture of electrical equipment (20.8%) and Manufacture of basic metals (4.6%).
Among use-based sectors, capital goods production remained a key growth driver, rising 12.9% compared with 12% month-on-month, signalling continued strength in investment activity. Consumer durables output growth accelerated to 7.2% from 5.6% in the previous month, while consumer non-durables production increased 3.6% compared with 0.2% earlier.
Primary goods output growth improved to 2.6% from 0.8% month-on-month, whereas intermediate goods production growth moderated to 5.8% from 10.3% in the previous month. Infrastructure goods output rose 5.9% year-on-year, reflecting steady momentum in core industrial activity.
"The Quick Estimate of IIP stands at 122.7 against 116.7 in May 2025. The indices of Industrial Production for Mining & Quarrying, Manufacturing, Electricity & Gas Supply and Water Supply, Sewerage & Waste Management for the month of May 2026 stand at 112.9, 122.6, 129.6 and 145.1 respectively," an official government press release stated.
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