India's industrial production rises 5.1% in May

India's industrial production grew by 5.1 percent in May, accelerating from a revised 4.9 percent in April, according to data released by the Ministry of Statistics and Programme Implementation on Monday, June 29. The expansion was driven by a robust manufacturing sector and a strong surge in electricity and gas supply.

The manufacturing sector, which holds the largest weight in the Index of Industrial Production (IIP), grew by 5.5 percent year-on-year. Key contributors included the manufacture of motor vehicles, trailers, and semi-trailers, which grew by 14.5 percent, and electrical equipment, which surged by 20.8 percent. The electricity, gas, and water supply sector saw a significant increase of 9.9 percent. However, mining and quarrying output contracted by 1.6 percent, continuing to drag on overall growth.

The data represents the second monthly release under a newly revised IIP series, which has updated its base year to 2022-23 and incorporates a more granular price structure. The National Statistics Office stated that the series now uses an Output Producer Price Index as the deflator for a significant portion of value-based production data, replacing the earlier Wholesale...