Reports & Indexes

India's Industrial Output (IIP) Grows 5.1% in May 2026 — a Five-Month High

By TestNeeti Editorial TeamPublished Monday, 29 June 2026 2 min readSource: The HinduArticle 4 of 6

India's Index of Industrial Production (IIP) grew 5.1% year-on-year in May 2026, a five-month high, up from 4.9% in April, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on 29 June 2026. The growth was led by the Electricity & Gas sector (up about 9.9%) and the manufacturing sector (up 5.5%), even as mining remained under pressure. Manufacturing, which accounts for over three-quarters of the index, moderated slightly from 6.1% in April. The IIP stood at 122.7 in May 2026, compared with 116.7 a year earlier, under the new base year of 2022-23 with a refined measurement methodology.

Key Facts & Details

9 points

1
India's IIP grew 5.1% year-on-year in May 2026 — a five-month high.
2
This was up from 4.9% in April 2026.
3
Growth was led by Electricity & Gas (~9.9%) and manufacturing (5.5%).
4
Mining remained weak, dragging on the overall index.
5
The IIP index stood at 122.7 in May 2026 (vs 116.7 a year earlier).
6
Data uses the new base year 2022-23 and was released by MoSPI.

Deep Dive

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Manufacturing accounts for over three-quarters of the IIP, so its trend dominates the headline number.
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The IIP is also classified by use-based categories (capital goods, consumer durables/non-durables, infrastructure goods, primary goods).
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The 2022-23 base-year revision modernised the index to better reflect the current structure of industry.

Exam Focus

What was India's IIP growth in May 2026, and which sectors led it?

Exam Relevance & Angle

The IIP is a core high-frequency macro indicator regularly asked in banking and SSC economy sections. Examiners test the headline growth (5.1%), the leading sectors (electricity, manufacturing), the publisher (MoSPI) and the base year (2022-23) — all present in this release.

Target Exams

SBI POIBPS POIBPS RRB OfficerRBI Grade BRBI AssistantNABARD Grade ASSC CGLSSC CHSLRRB NTPCLIC AAOUPSC CSEState PCS

Background & Context

The Index of Industrial Production (IIP) measures the short-term change in the volume of industrial output and is compiled and released monthly by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). It covers three broad sectors — mining, manufacturing and electricity — with manufacturing carrying the largest weight (over 77%). The index is also presented under use-based categories such as capital goods, consumer durables and infrastructure goods. In 2026 the IIP shifted to a new base year of 2022-23 (from 2011-12), updating the basket and weights to reflect the current industrial structure; a base-year change makes the index a more accurate gauge of present-day output.