New Delhi: India’s industrial production grew 6.7% year-on-year in July 2026, supported by strong gains in manufacturing and electricity and gas supply. Manufacturing output rose 7.3%, while electricity and gas supply increased 8.7%. Mining and quarrying, however, declined 0.9% during the month.
The latest Quick Estimate showed that the overall Index of Industrial Production (IIP) reached 124.8 in July. It stood at 117.0 in July 2025. July growth was lower than the 7.3% Quick Estimate recorded for June 2026.
The Ministry of Statistics and Programme Implementation released the figures on August 28. The July estimate uses production data received from source agencies. These agencies collect information from factories and other producing establishments.
Manufacturing sector drives industrial production growth
Manufacturing remained the main contributor to industrial production growth in July. Out of 23 manufacturing industry groups, 19 recorded positive growth compared with July 2025.
Electrical equipment led the major manufacturing groups with growth of 28.3%. Motor vehicle manufacturing followed with a 22.2% rise, while machinery and equipment not elsewhere classified grew 12.1%.
Auto components, spares and accessories, passenger cars and commercial vehicles supported the motor vehicle sector. Meanwhile, switchgear, circuit breakers, control panels, UPS and solid-state drives helped electrical equipment output.
Optical-fibre and cable connectors also contributed to the electrical equipment segment. Construction machinery, pumps and turbines supported growth in machinery and equipment manufacturing.
Several other industries also posted strong gains. Beverages increased 21.9%, while rubber and plastics products grew 18.6%. Other non-metallic mineral products rose 16.5%, and other transport equipment increased 22.0%.
Computer, electronic and optical products recorded 11.1% growth. Fabricated metal products increased 8.9%, while furniture production rose 8.8%. Textiles grew 3.9%, and food products increased 2.6%.
Some manufacturing groups, however, recorded declines. Tobacco products fell 12.2%, while pharmaceuticals declined 5.6%. Chemicals and chemical products contracted 2.7%, while wearing apparel dropped 0.6%.
For April-July, manufacturing recorded 7.0% growth. Its cumulative index reached 123.4 during the first four months of 2026-27.
Capital goods strengthen industrial production performance
The use-based classification showed broad growth across major categories in July. Capital goods recorded the strongest increase at 16.1%, followed by consumer durables at 10.5% and intermediate goods at 10.0%.
Infrastructure and construction goods grew 6.9%, while primary goods increased 4.1%. Consumer non-durables were the only major category to decline, falling 1.0%.
Intermediate goods, capital goods and primary goods emerged as the top three contributors to overall IIP growth. Capital goods recorded an index of 141.8, while intermediate goods stood at 130.9.
Infrastructure and construction goods reached 136.2 in July. Consumer durables and consumer non-durables recorded indices of 129.9 and 113.7, respectively.
The April-July figures also showed strong growth across most categories. Capital goods increased 15.4%, while intermediate goods rose 9.4%. Consumer durables grew 8.7%, and infrastructure and construction goods increased 7.1%.
Primary goods posted 3.3% growth during the period. Consumer non-durables recorded a smaller increase of 1.1%.
Mining remains a weak point
Mining and quarrying output declined 0.9% in July compared with the same month last year. The sector’s index fell to 94.4 from 95.3.
Fuel minerals declined 1.3%, while non-metallic minerals fell 12.5%. Metallic minerals, including rare earth minerals, recorded strong growth of 24.3%.
During April-July, mining and quarrying contracted 1.1%. Fuel minerals declined 3.8%, while non-metallic minerals fell 10%. Metallic minerals, in contrast, grew 22.9%.
Electricity and gas supply provide further support
Electricity and gas supply recorded 8.7% growth in July. Its index reached 133.5, compared with 122.8 in July 2025.
Electricity generation increased 9.3%, while gas supply declined 1.0%. Non-renewable electricity generation rose 12.5%, and renewable electricity generation increased 3.2%.
For April-July, renewable electricity generation grew 10.8%. Non-renewable electricity generation also recorded 8.8% growth during the period.
Water supply, sewerage and waste management recorded 7.4% growth in July. Water supply increased 4.4%, while sewerage and waste management rose 11.6%.
The combined sector grew 6.3% during April-July. Its July index reached 148.4, compared with 138.2 in July 2025.
April-July industrial production shows 6.3% growth
The cumulative IIP for April-July stood at 122.6. This represented growth of 6.3% over the corresponding period of the previous year.
Manufacturing expanded 7.0% during the period, while electricity and gas supply grew 8.7%. Mining remained the only major sector to contract, declining 1.1%.
Motor vehicles recorded 17.1% growth during April-July. Other transport equipment increased 20.1%, while electrical equipment rose 27.3%.
Machinery and equipment grew 9.8%, while computer, electronic and optical products increased 12.1%. Rubber and plastics products recorded 16.9% growth.
Some sectors remained under pressure during the period. Tobacco products declined 3.6%, while wearing apparel fell 5.2%. Pharmaceuticals contracted 3.1%, and chemicals declined 1.3%.
The July Quick Estimate was compiled with an 88.9% weighted response rate. The final June 2026 figures used a 93.0% weighted response rate and incorporated updated production data.
The ministry will revise the July figures in subsequent releases under the IIP revision policy. The current release also revised June 2026 data based on updated production information.
The IIP uses 2022-23 as its base year. The release covers sector-wise output, manufacturing groups under NIC-2025 and use-based categories.
The next IIP release, covering August 2026, is scheduled for Monday, September 28, 2026.
