India's industrial output quickens to 5.1% in May from 4.9% in April as manufacturing, electricity drive growth

India’s industrial output quickens 5.1% year-on-year in May 2026, compared with a growth of 4.9% in April, marking a steady expansion in factory activity despite a contraction in mining, according to the latest quick estimates of the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation (MoSPI).

The growth was driven primarily by manufacturing, which expanded 5.5%, and electricity and gas supply, which surged 9.9%. Water supply, sewerage and waste management also rose 5.5%, while mining and quarrying contracted 1.6%.

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The Quick Estimate of the IIP stood at 122.7 in May 2026, compared with 116.7 in May 2025.

The data release also marks a significant revision in the methodology used to compile the industrial output index. MoSPI said it has adopted the Output Producer Price Index (Output PPI) as the deflator for the new IIP series with the base year of 2022-23, replacing the Wholesale Price Index (WPI).

The switch affects 234 of the 463 item groups in the IIP basket, accounting for 36.02% of the overall index weight. The ministry said the revised PPI-based series supersedes the earlier WPI-based IIP 2022-23 series that was released on June 1.

According to MoSPI, the Output PPI offers a more detailed price structure and improves the measurement of real output for items where production data is reported in value terms. The ministry said the change is also aligned with international best practices and recommendations made by the Technical Advisory Committee on the base revision of the IIP.

Within manufacturing, 16 of the 23 industry groups recorded positive growth in May.

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The top three contributors to manufacturing growth were "Manufacture of motor vehicles, trailers and semi-trailers" with growth of 14.5%, "Manufacture of electrical equipment" with growth of 20.8% and "Manufacture of basic metals" with growth of 4.6%.

According to the ministry, passenger cars, auto components, spares and accessories, and commercial vehicles were among the major contributors to growth in the motor vehicle segment.

Based on use-based classification, capital goods output registered the fastest expansion at 12.9%, indicating sustained investment activity. Consumer durables output increased 7.2%, while infrastructure and construction goods and intermediate goods rose 5.9% and 5.8%, respectively. Consumer non-durables grew 3.6% and primary goods output rose 2.6%.

The ministry said intermediate goods, capital goods and primary goods were the largest contributors to the overall growth in industrial production during May.

MoSPI said the next set of industrial production data for June 2026 will be released on July 28.