Manufacturing growth in June 2026 was 7.8 per cent, when compared to 5.2 per cent in May 2026 and 2.4 per cent in June 2025.
Within the manufacturing sector, 19 out of 23 industry groups recorded a positive growth in June 2026 over June 2025. The top three positive contributors include manufacture of electrical equipment, manufacture of motor vehicles, trailers and semi-trailers and manufacture of food products.
Overall, the manufacturing growth increased to 6.3 per cent in April-June quarter of FY2026-2027, when compared to 4.1 per cent in the comparable period last year.
The manufacturing show, should be seen in the context of impact from the West Asia conflict.
The data suggests industrial recovery is slowly finding its feet and getting generalized, Megha Arora, Director, India Ratings and Research, said.
Manufacturing growth strengthened during the quarter, led by capital goods and consumer-oriented industries, according to Dipti Deshpande, Principal Economist, Crisil Ltd.
“Strong domestic demand, reflected in healthy automobile sales and sustained retail credit growth, have provided an offset to the worry beads of protracted geopolitical uncertainties,” she noted.
Meanwhile, the manufacturing sector still continues to face headwinds from the impact from West Asia conflict. Even though domestic demand has remained resilient, the input cost inflation has squeezed margins as evident from the first quarter results of many listed companies.
According to Crisil, core input sectors such as land transport, mining, chemicals, and rubber and plastic products are most vulnerable to an energy shock. Manufacturing, mining and construction have nearly 40 per cent of their cost structures linked to energy and energy-related inputs, making them among the most vulnerable sectors.
Impact from weaker monsoon may also add to the woes.