India’s industrial output grew 5.1% year-on-year in May 2026, marking steady expansion in factory activity even as mining contracted, according to the latest quick estimates of the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation (MoSPI).The growth was driven primarily by manufacturing, which expanded 5.5%, and electricity and gas supply, which surged 9.9%. Water supply, sewerage and waste management also rose 5.5%, while mining and quarrying contracted 1.6%.Also Read: India is plotting a game-changer for RBI, banks, corporates, investorsThe Quick Estimate of IIP for May 2026 recorded a growth of 5.1%, up from 3.6% in the same month last year.The base year for the IIP has been updated to 2022-23 from 2011-12, with the revised series introducing 120 new item groups and separate indices for multiple sectors, including renewable and non-renewable power generation.The updated series also broadens the scope of industrial activity captured by the index through the inclusion of emerging and previously underrepresented segments such as rare earth minerals, gas supply, water management and waste treatment.The Index of Industrial Production is one of India's key high-frequency economic indicators and tracks changes in output across mining, manufacturing, electricity, gas supply and water supply, sewerage and waste management activities. It is closely watched by policymakers, businesses and investors as an early gauge of industrial activity and the broader economy.