India June industrial output jumps 7.3%, fastest growth in nearly two years
Manufacturing drove the upside surprise against a 5.7% forecast, while electricity output stayed strong, mining returned to growth and April-June industrial expansion accelerated.
India’s industrial output rose 7.3% year on year in June, beating economists’ expectations of 5.7% and marking the fastest growth since July 2024. The expansion was driven by stronger manufacturing activity, increased government spending and continued growth in electricity generation. Manufacturing output rose 7.8% from a revised 5.2% in May, electricity generation increased 10.6% after a revised 10.3%, and mining activity climbed 1.0% after a revised 1.4% fall. Output of consumer durables rose 7.7% versus a revised 8.0% in May, while capital goods output increased 14.2% after a revised 15.5%. Industrial output for April-June grew 5.8%, compared with 3.4% a year earlier. Gaura Sen Gupta, chief economist at IDFC First Bank, said the reading was better than expected and that momentum was likely to hold on sustained consumption. The data follows a methodological change announced in May, when the government shifted to producer prices from wholesale prices for calculating factory output.
- producer prices: Prices received by producers for their goods, used here as the basis for calculating factory output instead of wholesale prices.
- consumer durables: Long-lasting household goods such as cars and phones that are typically bought infrequently.
- capital goods: Machinery and equipment used to produce other goods and services, often tracked as a sign of investment activity.