India’s Manufacturing Sector Shows Strong Growth in May and June 2026

India’s Ministry of Statistics and Programme Implementation reported that industrial production rose 5.1% year‑on‑year in May 2026, with the Index of Industrial Production reaching 122.7. Manufacturing led the rise with a 5.5% increase, while electricity‑and‑gas supply grew 9.9% and water‑supply, sewerage and waste‑management rose 5.5%. Sub‑sectors such as electrical equipment saw a 20.8% surge.

In June, the HSBC Flash India Manufacturing PMI registered 54.2, well above the 50 threshold that signals expansion. The PMI indicated slower growth in new orders and output, but input and output price indices fell, easing inflation pressure. Export demand remained positive, and employment continued to grow, albeit at a slower pace.