India’s Industrial Production Slows to 6.7% in July
By Business Desk
India’s Index of Industrial Production grew 6.7% in July 2026, a slowdown from June. Manufacturing surged, but mining contracted, indicating a mixed economic performance.
India’s Index of Industrial Production (IIP) recorded a 6.7% growth in July 2026, marking a slight deceleration from the 7.3% expansion observed in June 2026. This overall performance reflects varied contributions across key industrial sectors.
IIP Performance at a Glance
- IIP growth in July 2026: 6.7%
- IIP growth in June 2026: 7.3%
Examining the performance by sector reveals a mixed landscape, with robust growth in some areas contrasting with a contraction in others. Manufacturing, Electricity & Gas Supply, and Water Supply all posted positive growth figures.
- Manufacturing sector expanded by 7.3%
- Electricity & Gas Supply grew by 8.7%
- Water Supply, Sewerage & Waste Management increased by 7.4%
- Mining & Quarrying sector contracted by 0.9%
Manufacturing Sector: Key Drivers
Within the Manufacturing sector, the majority of industry groups, specifically 19 out of 23, reported positive growth when compared to July 2025. This indicates broad-based expansion across diverse segments of industrial production.
- Manufacture of motor vehicles, trailers and semi-trailers: 22.2% growth
- Manufacture of electrical equipment: 28.3% growth
- Manufacture of machinery and equipment n.e.c.: 12.1% growth
Use-Based Classification Insights
A deeper look into the Use-Based Classification shows strong gains in categories crucial for economic development and consumer spending. Capital Goods and Consumer Durables demonstrated particularly robust growth during the period.
- Capital Goods showed a growth of 16.1%
- Intermediate Goods expanded by 10.0%
- Consumer Durables increased by 10.5%
- Primary Goods grew by 4.1%
- Infrastructure/Construction Goods rose by 6.9%
- Consumer Non-Durables experienced a contraction of 1.0%
Despite these varied sectoral and use-based performances, the overall index for industrial production remained stable on a monthly basis in July 2026. This suggests a consolidation of industrial activity following the previous month’s higher growth.