Industrial output grows 6.7% in July 2026 as manufacturing, electricity offset mining slump

Industrial output increased by 6.7% in July from 8.8% in the preceding month, mainly due to a contraction in the mining sector.

This is the fourth monthly Index of Industrial Production (IIP) data under the new series.

"In July 2026, the Index of Industrial Production recorded a 6.7% year-on-year growth, supported by 7.3% growth in the manufacturing sector and strong growth of 8.7% in the Electricity and Gas Supply sector," the National Statistics Office said in a release on Friday.

The data showed that the mining and quarrying contracted by 0.9 per cent in July against 10.7% growth a year ago.

The IIP Growth in July 2025 was 5.4%. The industrial growth rate for July 2026 is 6.7% against 8.8% in the year-ago month, the release said.

The revised estimate of IIP for June is 8.8%( from the earlier released provisional estimate of 7.3%).

Manufacturing, electricity sectors support July IIP growth

The quick estimate of IIP stands at 124.8 against 117.0 in July 2025. The indices of Industrial Production for Mining & Quarrying, Manufacturing, Electricity & Gas Supply and Water Supply, Sewerage & Waste Management for the month of July 2026 stand at 94.4, 127.4, 133.5 and 148.4 respectively.

The growth rates of the sectors, mining & quarrying, manufacturing, electricity & gas supply and water supply, sewerage & waste management for July 2026 are (-) 0.9%, 7.3%, 8.7% and 7.4%, respectively.

In the manufacturing sector, 19 out of 23 industry groups have recorded a positive year-on-year growth in July 2026.

The top three positive contributors for July 2026 are: 'Manufacture of motor vehicles, trailers and semi-trailers' (22.2%, 'Manufacture of electrical equipment' (28.3%), and 'Manufacture of machinery and equipment (12.1%).

In the industry group 'Manufacture of motor vehicles, trailers and semi-trailers', item groups 'Auto Components, Spares and Accessories', 'Passenger Cars', and 'Commercial Vehicles' have shown significant contribution to growth.

In the industry group 'Manufacture of electrical equipment', item groups 'Electrical Apparatus for Switching or Protecting Electrical Circuits, UPS and Solid-State Drives, and 'End-Face Connectors for Optical Fibres and Cables' have shown significant contribution to growth.

The corresponding growth rates of IIP as per use-based classification in July 2026 over July 2025 are 4.1% in primary goods, 16.1% in capital goods, 10.0%in intermediate goods, 6.9% in infrastructure/construction goods, 10.5% in consumer durables and (-) 1.0% in consumer non-durables.