India’s industrial output grows 5.1% in May on manufacturing boost

India’s industrial production recorded a growth of 5.1 per cent year-on-year in May 2026, supported by strong performance in the manufacturing and electricity sectors, according to data released by the Ministry of Statistics and Programme Implementation (MOSPI) on Monday.The Index of Industrial Production (IIP) quick estimate stood at 122.7 in May 2026, compared with 116.7 in the same month last year.
According to information,the manufacturing sector registered a growth of 5.5 per cent during the month, while electricity and gas supply output increased 9.9 per cent. However, mining and quarrying output declined 1.6 per cent year-on-year.MOSPI also announced a major methodological update in the compilation of the IIP, with the adoption of the Output Producer Price Index (Output PPI) as the deflator for the new IIP series with the base year 2022-23. The new approach replaces the earlier use of the Wholesale Price Index (WPI).The ministry said the change impacts 234 out of 463 item groups in the IIP basket, accounting for 36.02 per cent of the total index weight. The revised series replaces the earlier WPI-based IIP 2022-23 series.
According to MOSPI, Output PPI offers a more detailed price structure compared with WPI and will help improve the estimation of real output for value-based production items. The ministry added that the methodology aligns with international practices and recommendations of the Technical Advisory Committee on IIP base revision.Within the manufacturing sector, 16 out of 23 industry groups recorded positive growth in May 2026.The key contributors to manufacturing growth included the manufacture of motor vehicles, trailers and semi-trailers, which grew 14.5 per cent, electrical equipment, which expanded 20.8 per cent, and basic metals, which increased 4.6 per cent.
MOSPI said passenger cars, auto components, spare parts and commercial vehicles were among the major contributors to growth in the motor vehicle segment.Under the use-based classification, capital goods recorded the highest growth at 12.9 per cent, followed by consumer durables at 7.2 per cent, infrastructure and construction goods at 5.9 per cent, intermediate goods at 5.8 per cent, consumer non-durables at 3.6 per cent and primary goods at 2.6 per cent.The ministry noted that intermediate goods, capital goods and primary goods were the top contributors to overall industrial growth during May.The next IIP data for June 2026 will be released by MOSPI on July 28.

(Business Correspondent)