India's Industrial Production Grows 7.3% In June 2026, Manufacturing Up 7.8%: PHDCCI

New Delhi, Jul 30 (KNN) India's industrial production recorded a 7.3 percent year-on-year growth in June 2026 on a higher base, supported by strong performance in the manufacturing and electricity and gas supply sectors, according to PHDCCI.

The Index of Industrial Production (IIP) stood at 123.1 in June 2026, compared with 114.7 in the same month last year.

Manufacturing and Electricity Drive Industrial Growth

Manufacturing, which carries the highest weight of 76.062 in the index, grew 7.8 percent during the month, while electricity and gas supply registered a 10.6 percent growth.

Within manufacturing, production of electrical equipment surged 34 percent, while manufacture of motor vehicles, trailers and semi-trailers grew 17.5 percent and food products increased 10.8 percent.

Capital Goods Lead Use-Based Growth

Based on use-based classification, capital goods recorded the strongest growth at 14.2 percent, followed by intermediate goods at 9.3 percent and primary goods at 4.9 percent.

PHDCCI President Rajeev Juneja said India's supportive domestic policy environment and measures to strengthen production would contribute to overall economic growth.

He also highlighted India's record exports of USD 863.1 billion in FY26, including merchandise exports of USD 441.8 billion, as a factor supporting export-oriented industrial production.

Structural Reforms Key to Sustaining Industrial Expansion

The chamber said broad-based growth across capital and primary goods indicates resilience in India's industrial sector, while continued infrastructure development, improved manufacturing competitiveness and ease of doing business reforms are supporting the industrial expansion.

Going forward, PHDCCI Secretary General and CEO Ranjeet Mehta said accelerating structural reforms, attracting greater private investment and deeper integration with global value chains would be critical to sustain industrial growth.

(KNN Bureau)