Industrial Output Growth Accelerates to 5.1% in May
India's industrial output growth rose to 5.1% in May 2026, up from 4.2% in April, according to data released by the Ministry of Statistics and Programme Implementation. The growth was primarily driven by robust performance in the electricity and manufacturing sectors, while mining continued to contract.
Electricity and Manufacturing Lead the Recovery
The electricity sector recorded a growth of 8.3% in May, compared to 6.1% in the previous month, reflecting increased demand due to rising temperatures and economic activity. Manufacturing output grew by 5.6% in May, up from 4.8% in April, supported by strong performance in basic metals, chemicals, and automotive industries.
Mining Sector Remains in Contraction
In contrast, the mining sector continued to contract, with output declining by 0.9% in May, following a 1.2% drop in April. The contraction was attributed to lower coal and crude oil production, as well as regulatory hurdles in mineral extraction.
According to an official from the Ministry of Commerce and Industry, "The overall industrial growth is encouraging, but the persistent contraction in mining is a concern that needs to be addressed through policy reforms and investment in exploration."
Impact on Economic Outlook
The industrial output growth of 5.1% is above market expectations of 4.8%, signaling a steady recovery in the industrial sector. The index of industrial production (IIP) for May stood at 145.2, compared to 138.1 in the same month last year. The cumulative growth for April-May 2026 was 4.7%, up from 3.9% in the corresponding period of the previous fiscal year.
Economists believe that sustained growth in manufacturing and electricity, along with a revival in mining, could push industrial output closer to 6% in the coming months. However, global uncertainties and supply chain disruptions remain risks.
