India May Industrial Output Rises 5.1%

India's industrial output, measured by the Index of Industrial Production (IIP), grew by 5.1% year-on-year in May 2026, an increase from 4.9% in April. This growth was primarily driven by strong performances in the manufacturing sector (5.5% growth) and electricity and gas supply (9.9% growth), despite a contraction in mining and quarrying (-1.6%). The India — Ministry of Statistics and Programme Implementation (MoSPI) released this data and announced a significant methodological change: the replacement of the Wholesale price index (WPI) with the newly introduced Producer price index (Output PPI) as the deflator for the revised IIP series with a base year of 2022-23. This change, affecting 36.02% of the total index weight, aims to provide a more accurate measure of real industrial output and aligns India's industrial statistics with international best practices. Within manufacturing, 16 out of 23 industry groups recorded positive growth, with motor vehicles, electrical equipment, and basic metals being top contributors. Capital goods, consumer durables, infrastructure/construction goods, and intermediate goods also showed broad-based expansion, indicating sustained investment activity and improving industrial demand.