India's factory output accelerated in June as manufacturing activity strengthened and investment-linked sectors remained robust
Capital goods production surged 14.2%, indicating sustained momentum in industrial investment
MoSPI data showed positive growth across 19 of 23 manufacturing industry groups
India's industrial production accelerated in June 2026, with the Index of Industrial Production (IIP) expanding 7.3% year-on-year, reflecting stronger manufacturing activity and healthy growth across investment-oriented sectors.
The Quick Estimates of IIP at 123.1 in June, compared with 114.7 in the corresponding month last year, the Ministry of Statistics and Programme Implementation (MoSPI) data showed.
4 July 2026
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Industrial output growth improved from the revised 5.1% recorded in May.
Manufacturing, which carries the largest weight in the index, registered a growth of 7.8% during the month. Electricity and gas supply expanded 10.6%, while water supply, sewerage and waste management services rose 6.1%. Mining and quarrying recorded a comparatively modest increase of 1%, as per the data.
The MoSPI said 19 of the 23 manufacturing industry groups classified under the two-digit National Industrial Classification (NIC) recorded positive annual growth in June.
Among them, the manufacture of electrical equipment emerged as the fastest-growing segment, rising 34%. It was followed by motor vehicles, trailers and semi-trailers, which grew 17.5%, and food products, which expanded 10.8%.
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The ministry attributed the strong performance in electrical equipment to higher production of switchgear and circuit breakers, UPS systems and optical fibre connectors.
Growth in the automobile segment was supported by increased output of auto components, passenger cars and commercial vehicles, while food manufacturing benefited from higher production of tea, non-basmati rice and starch, it said.
Sustained Investment In Capital Goods
Use-based industrial data indicated continued strength in investment demand. Capital goods output increased 14.2% year-on-year, while intermediate goods production rose 9.3%, MoSPI said.
Infrastructure and construction goods registered growth of 7.5%, consumer durables rose 7.7%, and both primary goods and consumer non-durables recorded growth of 4.9%.
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The ministry said intermediate goods, primary goods and capital goods were the largest contributors to overall industrial production growth during June.
The June Quick Estimates were compiled using a weighted response rate of 86.7%, while the final revision for May was based on a response rate of 93.1%, it said.
