India’s industrial output saw a robust 6.7 per cent increase in July 2026, primarily propelled by strong performances in the manufacturing and electricity sectors, according to the latest government data.
IMAGE: A worker cuts a metal plate inside a industrial tank manufacturing factory on the outskirts of Ahmedabad. Photograph: Amit Dave/Reuters
Key Points
- India’s Industrial Production Index (IIP) recorded a 6.7 per cent year-on-year growth in July 2026.
- The manufacturing sector was a significant contributor, growing by 7.3 per cent, while electricity and gas supply saw an 8.7 per cent increase.
- The mining and quarrying sector experienced a contraction of 0.9 per cent in July 2026.
- Key manufacturing contributors included motor vehicles, electrical equipment, and machinery, showing strong growth.
- Consumer durables recorded a 10.5 per cent growth, while consumer non-durables contracted by 1.0 per cent.
Industrial output in India increased by 6.7 per cent in July 2026, a slight moderation from the 8.8 per cent recorded in the preceding month.
This growth was mainly attributed to strong performances in the manufacturing and electricity sectors, despite a contraction in the mining sector.
Sectoral Performance Highlights
According to a release from the National Statistics Office on Friday, the manufacturing sector registered a 7.3 per cent growth, while the Electricity and Gas Supply sector saw a robust 8.7 per cent increase year-on-year.
In contrast, the mining and quarrying sector contracted by 0.9 per cent in July 2026, a significant shift from the 10.7 per cent growth observed a year ago.
The IIP growth in July 2025 was 5.4 per cent, indicating a healthy acceleration in industrial activity for the current period.
The revised estimate for IIP in June stands at 8.8 per cent, up from the earlier provisional estimate of 7.3 per cent.
Manufacturing Industry Groups Show Positive Trends
Within the manufacturing sector, 19 out of 23 industry groups reported positive year-on-year growth in July 2026.
The top three contributors to this growth were ‘Manufacture of motor vehicles, trailers and semi-trailers’ (22.2 per cent), ‘Manufacture of electrical equipment’ (28.3 per cent), and ‘Manufacture of machinery and equipment’ (12.1 per cent).
Specific item groups like ‘Auto Components, Spares and Accessories’, ‘Passenger Cars’, and ‘Commercial Vehicles’ significantly boosted the motor vehicles segment.
Similarly, ‘Electrical Apparatus for Switching or Protecting Electrical Circuits, UPS and Solid-State Drives’, and ‘End-Face Connectors for Optical Fibres and Cables’ were key drivers in the electrical equipment industry group.
Use-Based Classification Growth
Analysing the IIP by use-based classification, primary goods grew by 4.1 per cent, capital goods by 16.1 per cent, and intermediate goods by 10.0 per cent in July 2026 over July 2025.
Infrastructure/construction goods saw a 6.9 per cent increase, while consumer durables recorded a strong 10.5 per cent growth. However, consumer non-durables experienced a contraction of 1.0 per cent during the same period.
