India Industrial Production Eases from 2-Year High

Industrial production in India expanded by 6.7% from the previous year in July of 2026, slowing from the upwardly revised, over two-year high of 8.8% in June, but ahead of market expectations of 6%. The result remained above averages from the previous two years, and extended the period of recovery from lower growth earlier this year as the outbreak of war in the Middle East lifted energy prices and dented economic conditions in India. Manufacturing, which accounts for 76% of industrial production, expanded by 7.3% from the upwardly revised 9.5% in June. Meanwhile, electricity and gas supply expanded by 8.7% from 11.3%). On the other hand, mining and quarrying output contracted by 0.9% from a growth rate of 1.6%.

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.