New Delhi: India’s industrial output, measured by the Index of Industrial Production (IIP), grew 6.7% year-on-year in July, compared with 8.8% in June, according to provisional data released by the ministry of statistics and programme implementation on Friday.
The July print was higher than the 5.4% recorded in July 2025 and lower than the 8.8% growth recorded in June, indicating a moderation in activity from the previous month but stronger growth than a year earlier.
The stood at 124.8 in July 2026, compared with 117.0 a year earlier.
Manufacturing, which accounts for 76.06% of the IIP, grew 7.3% in July, compared with 9.5% in June and negative 2.4% in July 2025, providing the main impetus to overall industrial growth.
Out of 23 manufacturing industry groups, 19 expanded during the month. Growth was primarily led by motor vehicles and trailers (up 22.2%), electrical equipment (up 28.3%), and general industrial machinery (up 12.1%).
- Mining and quarrying output contracted by 0.9% in July, compared with 1% growth in June and 10.7% growth a year earlier.
- Electricity generation and gas supply increased 8.7% during the month, compared with 10.6% in June and 2.4% in July 2025.
- Water supply, sewerage and water-management activities grew 7.4% in July, compared with 6.1% in June.
- Capital goods output grew 16.1% in July, compared with 17.9% in June, indicating continued strength in investment-linked activity.
- Infrastructure and construction goods grew 6.9%, compared with 8.8% in June, while intermediate goods expanded 10%, compared with 11.5% in June.
- Consumer durables grew 10.5%, compared with 10.3% in June, while consumer non-durables contracted 1%, compared with 5.6% growth in June.
- Primary goods increased 4.1%, compared with 5.4% in June.
Core-sector growth moderates
The output of India’s nine core industries, which account for around 40% of the weight in the revised IIP, moderated to 5.4% in July, compared with 6% in June. The core sector growth of July was led by iron ore, cement and electricity, which expanded 29.5%, 13.1% and 9%. Coal output rose 7.6%, while steel and refinery products grew 2.9% and 2.7%. Natural gas, crude oil and fertiliser production, however, contracted during the month.
The core-sector data provides an indication of the performance of key infrastructure-linked industries ahead of the IIP release.
“IIP growth has remained quite strong during the first four months of FY27, belying expectations of an adverse impact on account of the West Asia tensions, although this was also partly supported by a favourable base,” said Rahul Agrawal, principal economist at ICRA Ltd.
The July data is the fourth monthly release under the new IIP series, with 2022-23 as the base year, replacing the earlier 2011-12-based series.
The revised series covers 463 item groups comprising 1,042 products, compared with 407 item groups under the previous series. It includes 120 newly added products such as CCTV cameras, stents, aircraft and spacecraft parts, magnetic stripe cards, articles of non-woven textiles and vaccines.
The new series also expands coverage beyond mining, manufacturing and electricity to include gas supply, water supply, sewerage and waste-management activities.
The mining and quarrying component has been broadened to include minor minerals and rare-earth minerals, while electricity generation is separately tracked through renewable and non-renewable sources.
The revised series uses 2022-23 gross value added and output data to derive weights and adopts the National Industrial Classification (NIC) 2025 for dissemination.
“July IIP data confirms that growth momentum in the economy remains strong. Even though the headline growth number of 6.7% YoY is softer than the growth in June, it is largely on the back of a weather-related slowdown in the mining sector. The manufacturing sector continues to grow at a solid 7.3%. Moreover, growth in capital goods production, intermediate goods and consumer durables production reflects broad-based strength in industrial activity in the country,” said Rajni Thakur, chief economist, L&T Finance.