FX.co ★ India Infrastructure Output Picks Up

India’s infrastructure output rose by 5.0% year-on-year in June 2026, accelerating from an upwardly revised 3.2% increase in May and marking the fastest growth since January. The data point to a modest recovery in the second quarter, following weaker expansion after the war in Iran drove up energy prices and raised production costs for Indian manufacturers.

Growth was particularly strong in construction-related inputs, with iron ore output surging 43.9% (up from 19.0% in May), cement rising 9.8% (from 8.4%), and steel increasing 4.6% (slightly below 5.1% in May). Electricity generation also expanded, up 9.8% compared with 11.2% in the previous month.

By contrast, the supply shock to energy exports from the Persian Gulf weighed on refinery activity, with output of refinery products contracting 4.7%, albeit less sharply than the 8.2% decline recorded in May.