Industrial Output Climbs 5.1% as Capital Goods Surge 12.9%

India’s Index of Industrial Production (IIP) grew 5.1% year-on-year in May 2026, with the overall index rising to 122.7 from 116.7 a year earlier.

The Manufacturing sector, which has the highest weight in the index, grew 5.5%. Electricity & Gas Supply recorded the strongest growth at 9.9%, while Water Supply, Sewerage & Waste Management increased 5.5%. Mining & Quarrying contracted 1.6%.

Within manufacturing, 16 of 23 industry groups reported positive growth. The biggest contributors were motor vehicles, trailers & semi-trailers (14.5%), electrical equipment (20.8%), and basic metals (4.6%). Growth was supported by higher production of passenger cars, auto components, commercial vehicles, switchgear, transformers, UPS systems, steel coils, plates, bars and rods.

Under the use-based classification, Capital Goods recorded the highest growth at 12.9%, followed by Consumer Durables (7.2%), Infrastructure/Construction Goods (5.9%), Intermediate Goods (5.8%), Consumer Non-Durables (3.6%), and Primary Goods (2.6%).

The corresponding indices for May 2026 stood at 119.6 for Primary Goods, 135.3 for Capital Goods, 123.1 for Intermediate Goods, 130.8 for Infrastructure/Construction Goods, 120.4 for Consumer Durables, and 118.4 for Consumer Non-Durables.

The government also revised the IIP series by replacing WPI with Output PPI as the deflator for 234 of 463 item groups, covering 36.02% of the index weight. The next IIP data for June 2026 will be released on 28 July 2026.