India’s Industrial Output Surges 6.7% in July 2026

India’s industrial production registered a 6.7% year-on-year increase in July 2026, propelled significantly by a 7.3% expansion within the manufacturing sector and an 8.7% rise in electricity and gas supply.

The Index of Industrial Production (IIP) for July 2026 reached 124.8, an increase from 117.0 recorded in July of the previous year. This overall industrial growth, however, showed a slight moderation compared to the 7.3% growth observed in June 2026.

Sectoral Dynamics Highlight Key Contributions

A detailed breakdown of the industrial landscape indicates broad-based growth across manufacturing, with 19 out of 23 industry groups reporting positive figures. Conversely, the mining and quarrying output experienced a contraction of 0.9%.

• Manufacture of motor vehicles, trailers, and semi-trailers grew by 22.2%.
• Electrical equipment output saw a significant rise of 28.3%.
• Machinery and equipment manufacturing expanded by 12.1%.

Within the critical automobile sector, key drivers contributing to this growth included auto components, passenger cars, and commercial vehicles, underscoring robust activity in vehicle production.

Use-Based Classification Reflects Investment and Consumption

The use-based classification further illuminates the drivers of industrial activity, revealing strong performance in categories linked to investment and infrastructure development. These figures provide insight into where economic momentum is concentrated.

• Capital goods production increased by 16.1%.
• Intermediate goods rose by 10%.
• Infrastructure and construction goods expanded by 6.9%.
• Primary goods also saw a 4.1% rise.
• Consumer durables output increased by 10.5%, while consumer non-durables contracted by 1% compared to July 2025.

The Ministry of Statistics and Programme Implementation (MoSPI) released these July figures as quick estimates, noting that they are subject to potential revision in subsequent releases.