NEW DELHI: Industrial production grew 5.1% in May 2026, as against 3.4% a year ago, on account of strong expansion recorded in electricity and manufacturing sectors during the month, pointing to a resilient domestic demand in the face of the West Asia conflict. Sequentially too, industrial production fared better in May as compared to 4.9% in April. The index of industrial production (IIP) data released by the statistics ministry Monday is the second in series with the new 2022-23 base year. Govt has incorporated further changes in methodology during the month as it now uses producer price index (PPI) as a deflator to estimate real output, thus discontinuing the use of wholesale price index (WPI) for this purpose altogether. DPIIT for the first time released output PPI data on June 15. Among the sub sectors, electricity and gas supply (9.9%) showed robust growth in May, followed by manufacturing (5.5%), water supply, sewerage & waste management (5.5%). Meanwhile, mining and quarrying (-1.6%) recorded decline in production during the month. Bank of Baroda chief economist Madan Sabnavis said performance is encouraging, notwithstanding the global environment. “Electricity fared better as heat wave led to higher demand along with the focus on renewables, though there were positive base effects too,” he said. Among the manufacturing sector, industries like apparel, wood products, printing material and refinery products, though, registered a decline in production as the export market got affected by global turmoil. Crisil principal economist Dipti Deshpande said industrial production may turn “softer” in coming months as manufacturing and construction face high-cost pressure due to key imported inputs.
