India’s industrial activity gathered momentum in June, with factory output growing at its fastest pace in nearly two years as manufacturing remained robust and investment-linked sectors continued to outperform, pointing to resilient domestic economic activity despite global uncertainties.

The Index of Industrial Production (IIP) rose 7.3 percent year-on-year in June, up sharply from the revised 5.1 percent growth recorded in May. The index stood at 123.1, compared with 114.7 a year earlier.

“The year-on-year (YoY) growth in the IIP surged to a 23-month high of 7.3 percent in June 2026 from 5 percent in May 2026, amid a broad-based acceleration in growth across the four sectors between these months, albeit partly benefitting from a modest base. Manufacturing output growth, in particular, witnessed a sharp uptick in June 2026, contributing as much as 199 bps of the 235 bps uptick in the IIP growth relative to May 2026,” said  Aditi Nayar, chief economist, ICRA.

The acceleration was driven primarily by manufacturing, which accounts for over three-fourths of the index and expanded 7.8 percent in June. Electricity and gas supply also remained strong with 10.6 percent growth, while mining activity was comparatively subdued, rising just 1.0 percent.

Manufacturing growth was broad-based, with 19 of the 23 industry groups registering positive growth over a year earlier. The biggest boost came from electrical equipment, where output surged 34 percent, followed by motor vehicles, trailers and semi-trailers at 17.5 percent, and food products at 10.8 percent.