5 days ago
India’s Industrial Output Slows to 6.7% as Mining Contracts
India’s factories and other industries made more products in July 2026 than they did in July last year.
Overall industrial production grew 6.7%.
This was slower than the revised 8.8% growth recorded in June.
Manufacturing grew 7.3%, helped by electrical equipment, cars, and machinery.
Electricity and gas production also increased by 8.7%.
Water supply, sewerage, and waste-management activity rose 7.4%.
Mining was the only major sector to shrink, falling 0.9%.
Businesses continued to buy or make many machines, so capital goods grew strongly.
Everyday quickly used products, such as food and toiletries, fell by 1%.
India’s industrial production grew 6.7% year-on-year in July 2026, down from a revised 8.8% in June.
Manufacturing expanded 7.3%, with 19 of 23 industry groups recording growth.
Electrical equipment, motor vehicles, and machinery led manufacturing, rising 28.3%, 22.2%, and 12.1%, respectively.
Mining and quarrying contracted 0.9%, while electricity and gas supply grew 8.7% and water-related services rose 7.4%.
Capital goods increased 16.1%, but consumer non-durables fell 1%; April-July industrial growth reached 6.3%.
- Who
- India’s industrial sectors, measured through the Index of Industrial Production by the National Statistics Office and Ministry of Statistics and Programme Implementation.
- What
- Industrial output grew 6.7% year-on-year in July 2026, slower than June’s revised 8.8% growth.
- Where
- India.
- When
- July 2026; the figures were released on Friday as provisional or quick estimates.
- Why
- Mining contracted, while manufacturing and electricity growth slowed from June, reducing the overall growth rate.
Resilient Industrial Activity
Risks and Moderation
Overall outlook
Resilient Industrial Activity
Economists cited in the reports said industrial activity remained resilient, with April-July growth ahead of the same period a year earlier and capital goods showing continued investment strength.
Risks and Moderation
Other economists and analysts warned that growth had moderated from June and could face pressure from inflation, weather-related uncertainty, global conditions, and elevated energy prices.
Mining contraction
Resilient Industrial Activity
The decline in mining was described as a temporary or seasonal softening that often occurs with the monsoon season.
Risks and Moderation
Analysts also said lingering geopolitical tensions and other external pressures may have weighed on mining and overall industrial growth.
Key facts
- July IIP growth
- 6.7% year-on-year
- June IIP growth
- 8.8% after revision; some reports also cited the earlier provisional estimate of 7.3%
- July IIP index
- 124.8, compared with 117.0 in July 2025
- Sector performance
- Manufacturing grew 7.3%, electricity and gas supply 8.7%, water-related services 7.4%, and mining fell 0.9%
- Leading manufacturing groups
- Electrical equipment rose 28.3%, motor vehicles 22.2%, and machinery and equipment 12.1%
- Use-based categories
- Capital goods grew 16.1%, consumer durables 10.5%, and consumer non-durables declined 1%
- April-July growth
- Industrial production increased 6.3%, compared with 4.0% in the same period a year earlier
- Estimate status
- July figures are provisional or quick estimates and may be revised as additional data arrive
Quotes
National Statistics Office
India’s official statistical agency that released the industrial production data
“Usually, July sees some seasonal softening in industrial activity, particularly mining with the onset of the monsoon season. Moreover, mining activity this year could have also been affected by continued impact of lingering geopolitical tensions weighing on overall industrial growth.”
financialexpress.com
“In July 2026, the growth rates of the sectors, mining & quarrying, manufacturing, electricity & gas supply and water supply, sewerage & waste management for July 2026 are (-) 0.9 per cent, 7.3 per cent, 8.7 per cent and 7.4 per cent, respectively.”
deccanchronicle.com
Rahul Agrawal
Principal economist at ICRA Ltd.
“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”
livemint.com
“Capital goods sector continued to grow and maintain its lead. The segment’s performance along with growth in infrastructure/construction goods and intermediate goods – indicates increased investment activity.”
financialexpress.com
Sources
India’s Industrial Output Drops To 6.7 pc in July from 8.8 pc in June
July industrial output grows 6.7%; mining turns drag
India’s industrial growth slows to 6.7% in July as mining contracts, factory output loses pace
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India IIP Growth Slows To 6.7% In July From 8.8% In June As Manufacturing, Mining Weaken
IIP growth eases to 6.7% in July
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