Industrial output growth accelerated to a five-month high of 5.1 percent in May 2026, supported by improved results in manufacturing, electricity generation, capital goods and consumer products, according to the latest official figures.
The Ministry of Statistics and Programme Implementation noted that it has revised the latest Index of Industrial Production series, first issued on June 1. The updated series uses a 2022-23 base year and draws on additional data sources.
Officials stated they have stopped applying the Wholesale Price Index to certain value-based IIP components and switched to the Producer Price Index instead.
The current release replaces the earlier WPI-linked IIP 2022-23 data issued on June 1 2026, and users should rely on the PPI-based figures for analysis, research and policy work.
Economist Rahul Agrawal of ICRA observed that the adjustment produced notable shifts in segment growth rates, including manufacturing, and may prompt GDP revisions.
Manufacturing output rose 5.5 percent in May 2026, easing from 6.1 percent in April yet exceeding the 4.2 percent recorded a year earlier.
Bank of Baroda chief economist Madan Sabnavis attributed the 5.5 percent manufacturing gain to stronger consumption, with consumer durables expanding 7.2 percent and non-durables rising 3.6 percent. Within durables, automobiles led, followed by computers and electronics.
Electricity and gas supply growth reached a two-year high of 9.9 percent, aided by hotter weather and a late monsoon.
Mining and quarrying contracted 1.6 percent for the fifth straight month.
Consumer durables growth hit a five-month high of 7.2 percent, while non-durables reached 3.6 percent, also a five-month peak.
