India’s Factory Activity Powers 7.3% Growth in Industrial Output

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India’s Index of Industrial Production (IIP) rose by 7.3 percent year-on-year in June 2026. The manufacturing and electricity & gas supply sectors were the primary contributors to this growth. This information was revealed in government data released on Tuesday.

According to the data, the manufacturing sector recorded robust growth of 7.8 percent, while the electricity and gas supply sector saw a rise of 10.6 percent in June 2026. Meanwhile, the mining and quarrying sector grew by 1 percent, and the water supply, sewerage, and waste management sector increased by 6.1 percent.

According to the government, 19 out of the 23 industry groups within the manufacturing sector recorded positive growth in June.

The key industries recording the highest growth were:

Manufacture of electrical equipment – ​​34.0 percent
Manufacture of motor vehicles, trailers, and semi-trailers – 17.5 percent
Manufacture of food products – 10.8 percent
The Quick Estimate of the IIP stood at 123.1 in June 2026, compared to 114.7 in June 2025.

In the food products manufacturing category, the production of tea, non-basmati rice, and all types of starch contributed significantly to the growth.

The government stated that, alongside the Quick Estimate for June 2026, final revisions were also made to the data for May 2026. The June figures were compiled based on a weighted response rate of 86.7 percent, while the revised May figures were based on a weighted response rate of 93.1 percent.

According to the government, industrial production data for July 2026 will be released on August 28, 2026.

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