India's industrial output grew 5.1% in May 2026, up from 4.9% in April, according to data released by the government. The improvement was driven by a broad-based expansion in manufacturing and a sharp rise in electricity generation, signaling sustained domestic demand despite global uncertainties.
Manufacturing sector posts 5.5% growth
Manufacturing, which accounts for 76% of the Index of Industrial Production (IIP) basket, rose 5.5% in May. Although slightly lower than April's growth, the sector continued to gain momentum. Key contributors included automobiles, electronics, fabricated metals, and electrical equipment.
Electrical equipment saw the highest year-on-year growth at 20.8%. Motor vehicles increased 14.5%, other transportation equipment rose 14.3%, and fabricated metal products grew 15.5%. Computer and electronic products also recorded a strong increase of 11.4%.
Capital goods and infrastructure drive investment
Capital goods output rose 12.9% in May, compared to 12% in April and 9.5% a year earlier, indicating robust demand for machinery and equipment. Infrastructure and construction goods grew 5.8%, reflecting continued investment and infrastructure spending.
Consumer durables increased 7.2%, suggesting strong urban discretionary demand.
Electricity generation surges on summer demand
Electricity output jumped 11.1% in May, contributing significantly to headline growth. The gas and electricity supply category rose 9.9%, driven by higher power demand during the summer months.
Mining remains a drag
Mining and quarrying contracted 1.6% in May, following a 3.7% decline in April. Weaker output of crude oil, natural gas, and non-metallic minerals weighed on the sector.
Consumer-oriented industries underperform
Several consumer-facing industries recorded declines. Refined petroleum products fell 4.7%, printing dropped 10.3%, and wearing apparel decreased 8.8%. Chemicals continued to face pressure, declining 1.3%.
According to use-based data, investment-linked output remained the strongest growth pillar, while consumer durables growth pointed to resilient urban demand.
