Manufacturing, Electricity Lift Industrial Output Growth To 5.1% in May

New Delhi, Jun 30 (KNN) India's industrial output grew 5.1 percent year-on-year in May 2026, up from 4.9 percent in April, supported by strong performance in manufacturing and electricity despite a contraction in mining, according to the latest Index of Industrial Production (IIP) data released by the Ministry of Statistics and Programme Implementation (MoSPI).
 
Manufacturing and Electricity Drive Industrial Growth 
 
The Quick Estimate of the IIP stood at 122.7 in May, compared with 116.7 in the corresponding month last year, reported Economic Times.
 
Manufacturing, which carries the highest weight in the index, expanded 5.5 percent during the month, while electricity and gas supply registered growth of 9.9 percent. Water supply, sewerage and waste management also rose 5.5 percent, whereas mining and quarrying contracted 1.6 percent.
 
MoSPI Revises IIP Methodology 
 
MoSPI also announced a methodological revision to the IIP, adopting the Output Producer Price Index (Output PPI) as the deflator for the new 2022-23 base year series, replacing the Wholesale Price Index (WPI).
 
The ministry said the revised methodology covers 234 of the 463 item groups in the IIP basket, accounting for 36.02 percent of the index weight, and aligns the industrial production series with international best practices.
 
According to MoSPI, the Output PPI provides a more detailed price structure and improves the measurement of real output for items where production data is reported in value terms.
 
Auto, Electrical Equipment Lead Manufacturing Output 
 
Within manufacturing, 16 of the 23 industry groups recorded positive growth in May.
 
The highest contributors to manufacturing growth were the manufacture of motor vehicles, trailers and semi-trailers, which grew 14.5 percent, followed by electrical equipment at 20.8 percent and basic metals at 4.6 percent.
 
The ministry said passenger vehicles, commercial vehicles, auto components and accessories were among the key drivers of growth in the automobile segment.
 
Capital Goods Post Strongest Growth 
 
Based on use-based classification, capital goods recorded the strongest growth at 12.9 percent, indicating sustained investment activity.
 
Consumer durables output increased 7.2 percent, while infrastructure and construction goods and intermediate goods grew 5.9 percent and 5.8 percent, respectively. Consumer non-durables rose 3.6 percent, and primary goods output increased 2.6 percent.
 
MoSPI said intermediate goods, capital goods and primary goods were the largest contributors to the overall growth in industrial production during the month.
 
The ministry added that the industrial production data for June 2026 will be released on July 28.
 
(KNN Bureau)