IIP grows 7.3% in June 2026, manufacturing and electricity lead surge
Synopsis
India's factory output clocked a solid 7.3% expansion in June 2026, with 19 of 23 manufacturing sub-sectors in positive territory and electrical equipment output surging 34%. The breadth of the uptick — spanning autos, food, and power — points to demand recovery across multiple segments of the economy, not just a single seasonal spike.
Key Takeaways
India's IIP grew 7.3 per cent year-on-year in June 2026 , per government data released on 28 July 2026 .
Manufacturing expanded 7.8 per cent ; Electricity and Gas Supply surged 10.6 per cent .
19 of 23 manufacturing industry groups posted positive growth versus June 2025.
Top manufacturing contributors: Electrical Equipment (+34.0%), Motor Vehicles (+17.5%), Food Products (+10.8%).
The IIP Quick Estimate stood at 123.1 , up from 114.7 in June 2025.
IIP data for July 2026 is due on 28 August 2026 .
India's Index of Industrial Production (IIP) expanded 7.3 per cent year-on-year in June 2026, driven by a 7.8 per cent rise in manufacturing output and a sharp 10.6 per cent jump in electricity and gas supply, according to official government data released on Tuesday, 28 July 2026. The Quick Estimate of IIP stood at 123.1, up from 114.7 in June 2025.
Sector-wise Performance
All four tracked sectors posted positive growth in June. Mining and Quarrying grew 1.0 per cent, while Manufacturing — the largest component — expanded 7.8 per cent. Electricity and Gas Supply was the standout performer at 10.6 per cent, and Water Supply, Sewerage and Waste Management posted a 6.1 per cent gain. The respective production indices for these sectors stood at 110.0, 123.3, 131.0, and 145.7.
Manufacturing Breadth and Top Contributors
Within manufacturing, 19 of 23 industry groups at the NIC 2-digit level recorded positive growth in June compared to June 2025, signalling broad-based momentum rather than a narrow sectoral spike. The top three contributors were 'Manufacture of Electrical Equipment' at 34.0 per cent, 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' at 17.5 per cent, and 'Manufacture of Food Products' at 10.8 per cent. Within food products, items such as Tea, Rice (Other Than Basmati), and Starch (All Types) were significant growth drivers.
Data Methodology and Revisions
The June 2026 Quick Estimates were compiled at a weighted response rate of 86.7 per cent. Alongside the June release, indices for May 2026 have undergone final revision incorporating updated data from source agencies, with the final May figures compiled at a weighted response rate of 93.1 per cent. This is standard practice under the IIP release protocol.
What Comes Next
The IIP figures for July 2026 are scheduled for release on 28 August 2026, according to the official statement. This comes amid a broader recovery in domestic demand indicators, and the electricity sector's double-digit expansion may partly reflect seasonal cooling load as well as industrial consumption. Analysts will watch whether manufacturing's breadth — particularly in capital goods and consumer durables — is sustained through the monsoon quarter, which has historically been a softer period for industrial output.
Point of View
But the composition deserves scrutiny. Electrical equipment's 34% surge and auto's 17.5% gain are partly base-effect stories — June 2025 was a weak month for both sectors. The more durable signal is that 19 of 23 manufacturing sub-groups are in positive territory, suggesting demand is broadening beyond the usual suspects. Mining's near-flat 1.0% growth, however, remains a structural drag that no amount of manufacturing momentum fully offsets. The real test will be the August and September prints, when the monsoon typically compresses industrial activity and the base effect from last year's recovery kicks in harder.
NationPress
28 Jul 2026
Frequently Asked Questions
What is the IIP growth rate for June 2026?
India's Index of Industrial Production (IIP) grew 7.3 per cent year-on-year in June 2026, according to official government data released on 28 July 2026. The Quick Estimate stood at 123.1, compared to 114.7 in June 2025.
Which sectors drove IIP growth in June 2026?
Manufacturing grew 7.8 per cent and Electricity and Gas Supply surged 10.6 per cent, making them the primary drivers. Mining and Quarrying grew 1.0 per cent and Water Supply, Sewerage and Waste Management rose 6.1 per cent.
Which manufacturing sub-sectors performed best in June 2026?
The top three contributors were Manufacture of Electrical Equipment (34.0 per cent), Manufacture of Motor Vehicles, Trailers and Semi-Trailers (17.5 per cent), and Manufacture of Food Products (10.8 per cent). Within food products, Tea, Rice (Other Than Basmati), and Starch were key growth items.
How broad-based was manufacturing growth in June 2026?
Growth was broadly spread, with 19 of 23 manufacturing industry groups at the NIC 2-digit level recording positive year-on-year growth in June 2026. This indicates demand recovery across multiple segments rather than a single-sector spike.
When will the next IIP data be released?
The IIP figures for July 2026 are scheduled for release on 28 August 2026, according to the official government statement. May 2026 indices have also undergone final revision alongside the June release.
