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India’s industrial output surges, services expand
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2026-07-28 12:26 UTC → 2026-07-29 11:55 UTC ·
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India’s industrial and services output expands surges, services expand
India’s ₹37,500 cr coal‑gasification mission, approved in May 2026, continues to attract private interest of about ₹3 lakh cr, with the first phase funded at ₹8.5 bn. industrial momentum continued through July 2026. The Lakhanpur coal‑to‑ammonium‑nitrate plant is operating, and a ₹25 bn Coal India‑BHEL joint venture is slated for September 2029. Industrial data released 29 June showed the Index of Industrial Production (IIP) rising 5.1 recorded a 7.3 % YoY year‑on‑year rise in May, led June, the strongest expansion in 23 months, driven by 5.5 a 7.8 % growth surge in manufacturing and a 9.9 10.6 % jump in electricity and gas supply. Coal‑fired generation rose 14 % YoY to 120.20 bn kWh, while renewables reached a record Growth was broad‑based, with 19 % share. On 14 July the government launched the monthly Index of Services Production (ISP), covering about 60 % of the formal services sector. Trial data 23 manufacturing groups posting gains; electrical‑equipment, motor‑vehicle production and food‑product manufacturing together accounted for April 2026 indicated double‑digit expansion in 14 the bulk of 19 segments, with accommodation the increase. Mining and food services quarrying edged up 37.2 %, retail trade 30.8 %, administrative and support services 28.7 1 % and real estate 27.7 water‑supply, sewerage and waste‑management rose 6.1 %. A revision of India revised its industrial‑output methodology, replacing the Wholesale Price Index of Core Industries to a 2022‑23 base added iron ore and aligned weights with the industrial production index. Thermal power plants held 42.8 million tonnes of coal on 12 July, enough for 14 days at an 85 Output Producer Price Index as the deflator, aligning the IIP more closely with core‑industry weights. A parallel release showed Singapore’s factory output up 7.2 % load factor; a joint inter‑ministerial committee oversees coal deliveries and maintenance. FY 2025‑26 saw 9,470 MW of new thermal capacity added and a further 2,260 MW commissioned in June, underscoring regional industrial strength. Fitch Ratings used the current fiscal year. June 2026 IIP data showed a 7.3 % YoY increase, driven by to project a 7.8 9 % rise in manufacturing and a 10.6 aggregate revenue for rated Indian corporates in FY‑27, up from an estimated 5 % jump in electricity FY‑26, citing higher natural‑resource prices and gas supply. Nineteen of 23 manufacturing groups posted growth, led by electrical‑equipment (34 % robust demand across core sectors. The agency warned of total), motor‑vehicle production (17.5 %) external risks such as renewed US‑Iran tensions, higher energy costs, El Niño and food‑product manufacturing (10.8 %). Mining, quarrying a weak monsoon. Analysts highlighted the need for continued financing support for MSMEs to sustain the current growth trajectory. The broader services sector, tracked through the newly launched Index of Services Production, continued its rapid expansion, with double‑digit growth in accommodation, food services, retail trade and water‑supply also posted modest gains. real estate, reinforcing the overall economic upswing.
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- 2026-07-29 11:55 UTC India’s industrial output surges, services expand
- 2026-07-28 12:26 UTC India’s industrial and services output expands
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