India Industrial Output Hits 23-Month High of 7.3 Percent

India's industrial output grew by 7.3 percent year-on-year in June 2026, the fastest pace since July 2024. This growth exceeded economist expectations of 5.7 percent and was driven by a 7.8 percent expansion in manufacturing—specifically in food products, motor vehicles, and electrical equipment—alongside a 10.6 percent increase in electricity and gas supply. Mining activity grew by 1 percent.

Ministry of Statistics and Programme Implementation reported that capital goods output increased by 14.2 percent, indicating sustained investment activity. To align with international standards, the agency updated its methodology by replacing the Wholesale Price Index with the Output Producer Price Index as the deflator for the Index of Industrial Production series.

Economists described the figures as a better-than-expected result. Analysis indicates that the surge reflects a broad-based acceleration across four sectors, though it partly benefited from a modest base. Analysts expect the momentum to continue based on sustained consumption.