Sectors
Historical IIP Trend
Base Year 2022–23 • Monthly Data
Monthly Highlights & Key Changes
May 2026Major Highlights
- IIP growth accelerated to 5.1%, indicating continued expansion in India's industrial sector.
- Manufacturing grew 5.5%, remaining the largest contributor to overall industrial production.
- Electricity & Gas Supply recorded the strongest sectoral growth at 9.9%.
- Capital Goods increased 12.9%, signalling continued strength in investment-related activity.
Key Observations
- Mining & Quarrying declined 1.6%, making it the weakest performing major sector.
- 16 of 23 manufacturing industries recorded positive growth, reflecting broad-based industrial expansion.
- The revised Base Year 2022–23 methodology continues to use Output Producer Price Index (Output PPI) as the deflator.
- The next IIP release will indicate whether the current growth momentum is being sustained.
India's industrial activity remained resilient in May 2026, driven primarily by Manufacturing and strong growth in Electricity & Gas Supply. Investment-related sectors continued to perform well, with Capital Goods recording double-digit growth, while Mining & Quarrying remained the only major sector in contraction. Overall, the latest data suggests that industrial production continues to expand at a healthy pace despite sector-specific weakness.
ChartForest Insight
Professional interpretation of the latest industrial data
Sector Performance Dashboard
May 2026Industrial growth remained broad-based in May 2026, with three of the four major sectors recording positive year-on-year growth. Manufacturing continued to dominate the Index of Industrial Production due to its significant weight, while Electricity & Gas Supply emerged as the fastest-growing sector. Mining & Quarrying remained the only area of weakness, but its decline was outweighed by strong performance across the rest of the industrial economy.
Sector Performance Dashboard
May 2026Manufacturing remained the backbone of India's industrial production, contributing the largest share of the Index of Industrial Production (IIP) with a weight of 76.06%. Electricity & Gas Supply recorded the fastest annual growth at 9.9%, reflecting strong energy demand across the economy. Water Supply, Sewerage & Waste Management also maintained healthy growth, while Mining & Quarrying was the only major sector to contract, declining 1.6% year-over-year. Overall, three of the four major sectors recorded positive growth, indicating broad-based industrial expansion during May 2026.
Use-Based Classification
Performance of six use-based industrial categories
Industry Performance Matrix
Manufacturing Industry Groups • May 2026
Electrical Equipment remained the strongest-performing manufacturing industry in May 2026, followed by Fabricated Metal Products and Motor Vehicles. Growth continued to be supported by higher production of electrical machinery, automobiles, and engineering goods. On the downside, Printing & Reproduction, Wearing Apparel, and Petroleum Products remained the weakest-performing industries. Overall, 16 of the 23 manufacturing industry groups recorded positive growth, indicating broad-based industrial expansion despite weakness in a few sectors.
Historical Data
Monthly Index of Industrial Production (IIP)
| Month | General IIP | YoY Growth | Manufacturing | Mining | Electricity | Status |
|---|---|---|---|---|---|---|
| May 2026 | 122.7 | 5.1% | 5.5% | -1.6% | 9.9% | Quick Estimate |
| Apr 2026 | 118.2 | 4.9% | 4.6% | 0.2% | 6.4% | Revised |
| Mar 2026 | 129.7 | 4.3% | 4.5% | 0.5% | 7.1% | Final |
| Feb 2026 | 117.9 | 3.8% | 3.7% | 1.9% | 5.8% | Final |
| Jan 2026 | 123.0 | 5.3% | 5.7% | 2.1% | 6.9% | Final |
Knowledge Center
Learn about the Index of Industrial Production (IIP), methodology, revisions, calculation process and official data sources.
| Feature | Old | New |
|---|---|---|
| Base Year | 2011–12 | 2022–23 |
| Item Groups | 407 | 463 |
| Deflator | WPI | Output PPI |
| Coverage | Mining, Manufacturing, Electricity | Mining & Quarrying, Manufacturing, Electricity & Gas, Water Supply |
- Monthly production data is collected.
- Value-based products are converted into real output using Output PPI.
- Sector weights are applied.
- The Laspeyres Fixed Base Index is compiled.
- The General IIP and sectoral indices are released monthly.
- National Statistics Office (NSO)
- Ministry of Statistics & Programme Implementation (MoSPI)
- eSankhyiki Portal
- Office of the Economic Adviser (Output PPI)
New Methodology (Effective from 29 June 2026)
What’s New in the IIP 2022–23 Series?
The Ministry of Statistics and Programme Implementation (MoSPI) has introduced important methodological changes to the Index of Industrial Production (IIP) under the new Base Year 2022–23. These updates improve the accuracy of industrial production estimates and ensure that the index better reflects actual economic activity.
Key Changes
Output PPI Replaces WPI as the Deflator One of the biggest changes in the new IIP series is the replacement of the Wholesale Price Index (WPI) with the Output Producer Price Index (Output PPI) for value-based production data.
Output PPI measures prices received by producers more accurately than WPI, resulting in a better estimate of real industrial production after removing the effect of inflation.
234 Item Groups Now Use Output PPI
The new methodology applies to 234 out of 463 item groups included in the IIP basket. These item groups account for 36.02% of the total IIP weight, making this one of the most significant methodological revisions in the history of the index.
- Total Item Groups – 463
- Item Groups Using Output PPI – 234
- Share of Total IIP Weight – 36.02%
Historical IIP Data Has Been Revised
MoSPI has revised the entire IIP Base Year 2022–23 series using the new Output PPI methodology. The earlier WPI-based IIP series released on 1 June 2026 has been officially superseded, and all future analysis should use the revised Output PPI-based series.
More Accurate Measurement of Industrial Output
Output PPI provides a more detailed producer price structure than WPI, helping convert value-based production into real output more accurately. This makes industrial growth figures more reliable by reducing distortions caused by price fluctuations.
Better Support for GDP Estimation
The Index of Industrial Production is one of the key indicators used in estimating India’s quarterly Gross Domestic Product (GDP). The adoption of Output PPI improves volume estimation and strengthens the accuracy of National Accounts statistics.
Electricity Index Also Revised
In addition to adopting Output PPI, MoSPI has:
- Updated production data received from source agencies.
- Revised the Electricity Index.
- Corrected sub-sector weights within the Electricity sector.
These revisions mainly affect the Manufacturing and Electricity & Gas Supply sectors.
Why These Changes Matter
The revised IIP methodology provides a more accurate measure of India’s industrial performance by:
- Improving the estimation of real industrial output.
- Reducing the impact of inflation on value-based production data.
- Aligning India’s industrial statistics with international best practices.
- Supporting more accurate quarterly GDP estimates.
- Enhancing the reliability of long-term industrial growth analysis.
