India Industrial Production Grows Most in 2 Years

Industrial production in India expanded by 7.3% from the previous year in June of 2026, firmly above market expectations of a 5.7% growth rate to mark the sharpest pace of expansion in nearly two years. The result consolidated the rebound from lower growth rates in the start of the second quarter, when the war in the Middle East triggered energy shortages and lifted input costs for power-intensive industries. Manufacturing production surged by 7.8%, the most since the start of the year. In the meantime, output continued to surge for electricity and gas supply (10.6% vs 10.3% in May) and rebounded for mining and quarrying (1.0% vs -1.4%). From the previous month, industrial output expanded by 0.5%.

Industrial output in India expanded by 5.1% from the previous year in May of 2026, picking up from the 4.9% increase in the previous month and ahead of market expectations of 4.7%. It was the sharpest pace of growth since February, when cheaper energy prices before the outbreak of war in the Middle East provided a better macroeconomic backdrop for Indian goods producers, who rely on energy that is mostly imported. Manufacturing output growth, which accounts for 76% of domestic industrial production, eased to 5.5% from 6.1% in the previous month. In turn, the softer oil, gas, and mid-month pullback in coal prices aided electricity and utility generation to a 9.9% growth rate from 4.6% in April. Mining and quarrying output contracted by 1.6%, slowing from the sharper 3.8% contraction in April.

Industrial output in India expanded by 4.9% from the previous year in April of 2026, firmly above the market expectations of 3.9%. It reflected robustness in the Indian goods producing sectors despite ongoing pressure from surging energy prices and lack of stability in the rupee, which have dented the purchasing power domestically. It was the first reading using weights from the rebalanced industrial production index measured by the MOSPI, compared to the 4.1% annual growth in the previous month. Manufacturing production expanded by a sharper 6.2% in the period.