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29.06.202610:41:56UTC+00India Industrial Production Picks Up

India’s industrial output rose 5.1% year-on-year in May 2026, accelerating from a 4.9% increase in April and surpassing market expectations of 4.7%. This marked the fastest pace of expansion since February, when lower energy prices ahead of the outbreak of war in the Middle East created a more favorable macroeconomic environment for Indian manufacturers, who depend heavily on imported energy.

Manufacturing output, which represents about 76% of total industrial production, grew by 5.5%, moderating from 6.1% in the previous month. By contrast, softer oil and gas prices, along with a mid-month pullback in coal prices, supported a strong rebound in electricity and utility output, which surged 9.9% after a 4.6% gain in April. Meanwhile, mining and quarrying activity shrank 1.6%, though this was a smaller contraction than April’s 3.8% decline.

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