India's industrial output hits 23‑month high as Fitch projects 9% corporate revenue growth

India’s Index of Industrial Production grew 7.3% year‑on‑year in June 2026, the fastest expansion in 23 months. Manufacturing posted a 7.8% increase, while electricity and gas supplies surged 10.6%, signalling strong domestic demand and rising energy use. Other sectors such as water supply and mining also recorded gains.

Fitch Ratings forecasts that aggregate revenue for rated Indian corporates will rise 9% in FY27, up from an estimated 5% in FY26, driven by higher prices in natural resources and robust demand across core industries. The agency expects EBITDA margins to narrow to about 14.2% and leverage to stay steady at 2.7‑times. It warns of external risks including a possible resurgence of US‑Iran hostilities, higher energy costs, El Niño, and a weak monsoon.

Commenting on the industrial data, Shrikant Goyal, co‑founder of Getfive, said the growth “is a positive sign for the economy and must be sustained,” emphasizing the need for continued financing support for MSMEs.