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India's Index of Industrial Production grew 7.3% year-on-year in June 2026, its highest in 23 months.
The data was released by the National Statistics Office on 28 July 2026.
Growth accelerated from a revised 5.0% in May 2026, helped by a favourable base effect.
Manufacturing expanded 7.8% and electricity and gas supply 10.6%, the fastest-growing category.
Nineteen of the 23 industrial groupings within manufacturing recorded positive growth.
The IIP is reported as growth over the same month a year earlier, so the figure depends as much on the earlier month as on the current one. If output was unusually weak in June 2025, then even ordinary output in June 2026 produces a large percentage increase. That is the base effect, and it can flatter or depress a headline number without any real change in momentum. This is why analysts look past the headline to the sectoral detail and to sequential month-on-month movement. In this case the acceleration was described as partly base-driven but also broad, since all four major sectors sped up and 19 of 23 manufacturing groupings grew.
Simple Analogy: Scoring 60 marks after scoring 30 looks like doubling your performance, but the impressive part depends entirely on why the earlier score was so low.
[["Basis","Official measurement of actual output volume","Survey of purchasing managers' perceptions"],["Compiled by","National Statistics Office","Private compilers on behalf of sponsors"],["Release lag","Several weeks after the month ends","First business day of the following month"],["What it tells you","How much was actually produced","The direction and breadth of change"],["Character","Lagging but authoritative","Leading but indicative"]]
["Aspect","Index of Industrial Production","Purchasing Managers' Index"]
General Awareness > Economic Indicators
GS Paper 3 > Indian Economy: Growth, Development and Employment
General Awareness > Economy
With reference to India's Five-Year Plans, which of the following statements is/are correct? 1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries. 2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power. 3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan. Select the correct answer using the code given below.
Answer: 1 and 2 only
Which of the following activities constitute real sector in the economy? 1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics 3. A commercial bank lending money to a trading company 4. A corporate body issuing Rupee Denominated Bonds overseas Select the correct answer using the code given below:
Answer: 1 and 2 only
Which of the following is NOT an example of an industrial district in India?
Answer: Darjeeling-Jalpaiguri region
Identify the group of districts that are NOT an example of industrial districts of India.
Answer: Darjeeling-Jalpaiguri region
Which of the following statements about light industries is correct?
Answer: Use light materials to make consumer goods
The Index of Industrial Production, measuring the volume of output of the industrial sector.
The body under the Ministry of Statistics and Programme Implementation that compiles and releases the IIP.
The distortion in a year-on-year growth rate caused by an unusually high or low figure in the comparison period.
The grouping of IIP items by economic purpose, into primary goods, capital goods, intermediate goods, infrastructure goods, consumer durables and consumer non-durables.