India's Factory Output Remains on Strong Growth Path in June

India’s industrial demand remained resilient externally with 7.3 per cent year‑on‑year output expansion in June, a report said on Wednesday.

"India’s external demand has shown resilience even amid global uncertainties, as reflected in a pick-up in goods exports in Q1 FY27. Another critical factor will be sustaining domestic demand amid a deficit monsoon and rising inflation," the report from CareEdge Ratings said.

The industrial sector saw healthy performance across sectors, except mining and quarrying, while manufacturing recorded a strong growth of 7.8 per cent in June compared to 5.2 per cent in the preceding month, with 19 of 23 manufacturing subsectors posting gains.

Double‑digit gains were seen in electrical equipment (34 per cent), motor vehicles, trailers and semi‑trailers (17.5 per cent).

Textiles saw 13.7 per cent growth, food products stood at 10.8 per cent and other non‑metallic mineral products at 12.9 per cent.

On a use‑based classification, capital goods output jumped 14.2 per cent, intermediate goods 9.3 per cent, consumer durables 7.7 per cent, infrastructure and construction goods 7.5 per cent and primary goods 4.9 per cent, the report added.

On a quarterly basis, the index of industrial production (IIP) rose 5.8 per cent year‑on‑year in Q1 FY27, with electrical equipment and motor vehicles among the major segments showing strong growth of 25.8 per cent and 15 per cent respectively.

Rainfall deficit has narrowed from 40 per cent at the end of June to 15.8 per cent as of July 28, 2026, but remains below normal.

"While it is still early to assess the impact of monsoon on rural demand, the improvement in kharif sowing over the last few weeks is a positive development. Overall, India’s industrial activity will need to navigate an increasingly uncertain external environment alongside emerging domestic challenges," it added.