Strong growth was recorded by India's industrial production with year-on-year growth of 7.3% in June 2026 (provisional), supported by continued strengthening of India’s manufacturing and Electricity & Gas Supply sectors.
Manufacturing, with the highest weight of 76.062, expanded by 7.8%, while Electricity & Gas Supply registered a robust 10.6% growth in June 2026 (y-o-y provisional). The overall IIP stood at 123.1in June 2026 compared with 114.7 in June 2025.
India’s strong domestic policy environment supported by prudent measures to strengthen production will go a long way in strengthening overall growth said Mr. Rajeev Juneja, President, PHDCCI. Also, India’s highest-ever exports in FY 2025-26 reaching a record US$ 863.1 billion, with merchandise exports reaching US$ 441.8 billion in driving export driven IIP, he added.
Within manufacturing, there was strong growth in the production of Manufacture of motor vehicles, trailers and semi-trailers (17.5%), Manufacture of food products (10.8%) and Manufacture of electrical equipment (34%), reflecting strong demand across manufacturing and automotive value chains and domestic consumption.
Based on Use-Based Classification the top three positive contributors to the growth of IIP for the month of June 2026 were Intermediate Goods (9.3%), Primary goods (4.9%), and Capital Goods (14.2%), reflecting Strong investment by businesses in machinery and equipment, indicating confidence in future demand and capacity expansion, coupled with increased production of inputs and steady growth in basic raw materials, supporting industrial production across sectors, he added.
The broad-based expansion across capital goods, and primary goods is a positive indicator of resilience and depth of India's industrial growth. The Government's sustained emphasis on infrastructure development, enhancing manufacturing competitiveness and advancing ease of doing business reforms is creating a conducive environment for industrial growth.
Going forward, for maintaining this momentum and sustaining industrial expansion, accelerating structural reforms will be crucial, coupled with measures for attracting greater private investment and further integrating India into global value chains, said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.
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