According to www.rediff.com, India’s Industrial Production Index (IIP) recorded a 6.7 per cent year-on-year increase in July 2026, driven primarily by strong performances in manufacturing and electricity supply — though mining contracted by 0.9 per cent.
Sectoral Performance Highlights
The National Statistics Office reported that the manufacturing sector grew by 7.3 per cent year-on-year in July 2026, while electricity and gas supply surged by 8.7 per cent. In contrast, mining and quarrying declined by 0.9 per cent — a sharp reversal from the 10.7 per cent growth recorded in July 2025. The IIP growth for July 2025 stood at 5.4 per cent, indicating acceleration in industrial activity over the year.
The revised estimate for June 2026 IIP was upgraded to 8.8 per cent, up from an earlier provisional figure of 7.3 per cent. This marks a slight moderation from June to July, as July’s 6.7 per cent growth reflects continued but slightly softer momentum.
Manufacturing Industry Group Trends
Within manufacturing, 19 out of 23 industry groups posted positive year-on-year growth in July 2026. Top contributors included ‘Manufacture of motor vehicles, trailers and semi-trailers’ (22.2 per cent growth), ‘Manufacture of electrical equipment’ (28.3 per cent growth), and ‘Manufacture of machinery and equipment’ (12.1 per cent growth).
Specific high-performing items included ‘Passenger Cars’, ‘Commercial Vehicles’, and ‘Auto Components, Spares and Accessories’ in the motor vehicles group. In electrical equipment, key drivers were ‘Electrical Apparatus for Switching or Protecting Electrical Circuits, UPS and Solid-State Drives’ and ‘End-Face Connectors for Optical Fibres and Cables’.
Use-Based Classification Growth
By use-based classification, capital goods output rose by 16.1 per cent, intermediate goods by 10.0 per cent, and infrastructure/construction goods by 6.9 per cent in July 2026 compared to July 2025. Consumer durables grew strongly by 10.5 per cent, while consumer non-durables contracted by 1.0 per cent. Primary goods increased by 4.1 per cent.
These figures underscore divergent demand patterns across segments: robust investment in production capacity (capital goods), strong domestic consumption of high-value items (consumer durables), and softness in everyday essentials (consumer non-durables).
Source: rediff.com
Compiled from international media by the SCI.AI editorial team.
