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Manufacturing remains the primary growth engine, while stronger utility output offsets continued weakness in mining.
India’s industrial production expanded 5.1% year-over-year in May 2026, accelerating from 4.9% in April and exceeding market expectations of 4.7%, according to data released by the Ministry of Statistics and Programme Implementation (MOSPI).
The latest reading marks the strongest pace of industrial growth since February, reflecting continued resilience in the country’s manufacturing sector despite a more complex global economic backdrop. Lower energy prices earlier in the year helped support production activity before geopolitical tensions in the Middle East increased volatility across commodity markets.
Manufacturing, which represents approximately 76% of India’s industrial output, remained the largest contributor to overall growth. However, production growth in the sector moderated slightly to 5.5% in May from 6.1% in April.
Electricity and utility generation posted the strongest performance among the major sectors, with output increasing 9.9%, more than doubling April’s 4.6% growth rate. The acceleration coincided with softer prices for oil, natural gas, and coal during much of the month, reducing input costs and supporting higher power generation.
Meanwhile, the mining and quarrying sector remained under pressure. Output contracted 1.6% year-over-year in May, although the decline was less severe than the 3.8% contraction recorded in April.
The May data indicate that India’s industrial sector continued to expand at a solid pace, supported by stronger electricity generation despite slower manufacturing growth and ongoing weakness in mining. Future industrial performance is likely to remain influenced by domestic demand, energy costs, commodity price movements, and broader global economic conditions.
Source: Ministry of Statistics and Programme Implementation (MOSPI), Government of India.
