India's industrial output, measured by the Index of Industrial Production (IIP), grew by 5.1% year-on-year in May 2026, due to the strong growth in manufacturing and electricity, shows the recent data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.
The government has unveiled a key methodological change to improve the measurement of industrial activity. As per the official data, manufacturing, which has the highest weight in the index, grew by 5.5% in May, while electricity and gas supply registered a robust 9.9% growth. Mining and quarrying, however, contracted 1.6%.
The overall IIP stood at 122.7 in May 2026, up from 116.7 in the corresponding month last year. This time onwards , MoSPI announced that it has replaced the Wholesale Price Index (WPI) with the newly introduced Output Producer Price Index (Output PPI) as the deflator for the revised IIP series with base year 2022-23.
The ministry said the Output PPI provides a more granular measure of producer prices than the WPI and would improve estimates of real industrial output for sectors where production data is reported in value terms.
“MoSPI has decided to discontinue the use of WPI and has adopted the Output PPI as the deflator for the new IIP series (Base: 2022–23). Besides the use of Output PPI, MOSPI has incorporated updated data from a few of the source agencies since April 2022. Further, the Electricity Index has also undergone revision to address a compilation issue related to its sub-sectoral weights,” stated the release issues by the Ministry.
Within manufacturing, 16 of the 23 industry groups recorded positive growth. The top performers were manufacture of motor vehicles, trailers and semi-trailers (14.5%), electrical equipment (20.8%) and basic metals (4.6%). The use-based classification pointed to broad-based industrial expansion. Capital goods output rose 12.9%, indicating sustained investment activity, while consumer durables grew 7.2%. Intermediate goods expanded 5.8%, infrastructure and construction goods increased 5.9%, primary goods grew 2.6%, and consumer non-durables recorded a 3.6% rise.