FX.co ★ India Industrial Production Grows Most in 2 Years

India’s industrial production grew by 7.3% year-on-year in June 2026, significantly exceeding market expectations of 5.7% and marking the fastest pace of expansion in nearly two years. This performance reinforces the rebound from the weaker growth seen at the start of the second quarter, when the war in the Middle East led to energy shortages and pushed up input costs for power-intensive sectors. Manufacturing output rose by 7.8%, the strongest increase since the beginning of the year. At the same time, production in electricity and gas supply remained robust, accelerating to 10.6% from 10.3% in May, while mining and quarrying output returned to growth, increasing by 1.0% after a 1.4% contraction. On a month-on-month basis, overall industrial output expanded by 0.5%.