India's industrial output saw a 6.7% growth in July. Manufacturing output increased by 7.3% year-on-year during the same period. Electricity generation also rose by 8.7% in July. Consumer durables surged to an eight-month high, driving overall gro...
By ET Bureau |
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New Delhi: India's Industrial output grew 6.7% in July following a contraction in the mining sector, official data showed.
It had grown by an upwardly revised 8.8% in June. This is the fourth monthly Index of Industrial Production (IIP) data under the new series. Industrial output in April-July grew 6.3% compared with an increase of 4% a year earlier.
The IIP growth in July 2025 was 5.4%. Economists say growth is expected to outperform in next quarter. "Despite challenges stemming from the West Asia crisis, high-frequency indicators suggest that growth, which exceeded expectations in the first quarter of this fiscal, is likely to outperform expectations in the second quarter as well," said D K Joshi, chief economist, Crisil.
Mining Down
The data showed that mining and quarrying contracted 0.9% in July against 10.7% growth a year ago. Manufacturing output grew 7.3% year-on-year in July against a revised growth of 9.5% in June. In the manufacturing sector, 19 out of 23 industry groups recorded a positive year-on-year growth in July 2026.
Electricity generation rose 8.7% year-on-year in July against a revised increase of 11.3% a month earlier. As per use-based classification, primary goods grew by 4.1%, intermediate by 10.0% and construction and infra goods by 6.9%.
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Consumer durables were a key driver of IIP growth, surging to an eight-month high of 10.5% from 10.3% in June. Auto sales data had already pointed to healthy demand across both rural and urban markets.
Passenger vehicle sales, an indicator of urban demand, grew 34.3% on-year compared with 24.1% in June while tractor sales, a proxy for rural demand, rose 20.5% versus 11.9%. Output of consumer durables, including cars and phones, grew 10.5% year-on-year in July against a revised 10.3% increase a month earlier.
Output of consumer non-durables, such as food items and toiletries, fell 1% year-on-year in July against a revised 5.6% rise in the previous month. Capital goods output rose 16.1% year-on-year in July against a revised 17.9% increase in June.
