Industrial Output Rises 5.1% Year-on-Year in May 2026
India's Index of Industrial Production (IIP) recorded a growth of 5.1 per cent in May 2026 compared to the same month in 2025, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. The expansion was primarily supported by robust performances in the manufacturing and electricity sectors.
The manufacturing sector grew 5.5 per cent year-on-year, while the Electricity and Gas Supply sector posted a strong growth of 9.9 per cent. However, the Mining and Quarrying sector contracted by 1.6 per cent during the month.
IIP Quick Estimate and Methodological Change
The Quick Estimate of the IIP stood at 122.7 in May 2026, up from 116.7 in May 2025. MoSPI also announced a major methodological change in the compilation of the IIP. The ministry has adopted the Output Producer Price Index (Output PPI) as the deflator for the new IIP series with base year 2022-23, replacing the Wholesale Price Index (WPI).
According to the ministry, this change affects 234 out of 463 item groups in the IIP basket, representing 36.02 per cent of the total index weight. The revised series supersedes the earlier WPI-based IIP 2022-23 series released on June 1, 2026.
Output PPI Improves Real Output Estimation
MoSPI stated that the Output PPI provides a more granular price structure than WPI and will improve the estimation of real output for value-based production items. The ministry added that the move aligns with international best practices and recommendations of the Technical Advisory Committee on the base revision of IIP.
Manufacturing Sector: Top Performers
Within the manufacturing sector, 16 out of 23 industry groups recorded positive growth during May 2026. The top three contributors to manufacturing growth were:
- Manufacture of motor vehicles, trailers and semi-trailers – growth of 14.5 per cent
- Manufacture of electrical equipment – growth of 20.8 per cent
- Manufacture of basic metals – growth of 4.6 per cent
According to the ministry, passenger cars, auto components, spares and accessories, and commercial vehicles were among the major contributors to growth in the motor vehicle segment.
Use-Based Classification Highlights
Under the use-based classification, capital goods recorded the highest growth of 12.9 per cent, followed by consumer durables at 7.2 per cent, infrastructure and construction goods at 5.9 per cent, intermediate goods at 5.8 per cent, consumer non-durables at 3.6 per cent, and primary goods at 2.6 per cent.
The ministry said the top contributors to overall industrial growth in May were intermediate goods, capital goods, and primary goods.
Upcoming Data Release
MoSPI added that the next IIP data for June 2026 will be released on July 28.
