Archive · 29 Aug 2026
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.
- When
- July 2026; the figures were released on Friday as provisional or quick estimates.
- Where
- India.
- 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.
- 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
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
Industrial output growth narrows to 6.7% in July from 7.3% in June
India’s industrial output grows 6.7% in July as cars, electrical equipment power factories
India IIP Growth Slows To 6.7% In July From 8.8% In June As Manufacturing, Mining Weaken
