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Informist, Friday, Aug. 28, 2026

 

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--India Jul IIP growth 6.7% vs 5.4% year ago
--Informist Poll estimated Jul IIP growth at 6.1%
--India Apr-Jul IIP growth 6.3% vs 4.0% year ago 
--India Jul mining, quarrying sector output growth -0.9% vs 10.7% year ago
--India Jul manufacturing sector output growth 7.3% vs 5.1% year ago
--India Jul electricity, gas supply sector output growth 8.7% vs 2.4% yr ago
--India Jul water supply sector output growth 7.4% vs 7.5% year ago
--India Jul primary goods output growth 4.1% vs 4.8% year ago
--India Jul capital goods output growth 16.1% vs 5.9% year ago
--India Jul intermediate goods output growth 10.0% vs 3.5% year ago
--India Jul infrastructure goods output growth 6.9% vs 11.2% year ago
--India Jul consumer durables output growth 10.5% vs 3.9% year ago
--India Jul consumer non-durables output growth -1.0% vs 5.8% year ago
--India Jun IIP growth 8.8%, revised from 7.3%

 

NEW DELHI – India's industrial output, as measured by the Index of Industrial Production, moderated in July due to a contraction in mining and quarrying output and an adverse base effect. Data released by the statistics ministry Friday showed that growth in India's factory output eased to 6.7% in July from a revised 8.8% in June. 

 

Industrial growth in July was above the consensus estimate. According to an Informist poll, industrial growth was expected to moderate to 6.1% in July. The June print for industrial growth was revised upward to a series high of 8.8% from 7.3% previously. Industrial output rose 5.4% in July last year. 

 

Output of the mining and quarrying sector contracted 0.9% in July compared with a growth of 10.7% a year ago and 1.6% a month ago. The sector's output in July contracted mainly due to a fall in the production of non-metallic minerals and fuel minerals, which declined 12.5% and 1.3% on year, respectively. "Mining output reverted to a contraction in July 2026 after witnessing a modest expansion in June 2026 aided by the sizeable rainfall deficit," Rahul Agrawal, principal economist at ICRA, said in a note.

 

Overall industrial growth was supported by robust manufacturing output, which rose 7.3% on year in July, up from 5.1% a year ago. However, manufacturing output growth eased from 9.5% in June.

 

Output of the electricity and gas supply sector grew 8.7% in July, quicker than 2.4% a year ago but slower than 11.3% in June. Electricity generation from non-renewable sources led the sector's output, rising 12.5% in July, while a 1.0% contraction in gas supply output weighed on growth.

 

Output in the water supply, sewerage, and water management sector rose 7.4% last month, slightly slower than 7.5% a year ago.

 

Under the use-based classification, output of the capital goods, intermediate goods and consumer durables showed double-digit growth in July. Capital goods output rose 16.1%, the fastest among use-based categories. It had risen 5.9% a year ago. Intermediate goods output rose 10.0% from 3.5% a year ago, while consumer durables output grew 10.5% from 3.9% a year ago.

 

Output of primary goods grew at 4.1% in July, down from 4.8% a year ago. Growth in infrastructure and construction goods output also eased to 6.9% from 11.2% a year ago. Consumer non-durables output contracted 1.0% on year in July compared with a rise of 5.8% a year ago.

 

In Apr-Jul, India's factory output rose 6.3% on year compared with 4.0% in the corresponding period a year ago. 

 

"Overall, IIP growth has remained quite strong during the first four months of FY2027, belying the expectations around the adverse impact on account of the West Asia tensions, although this was also partly supported by a favourable base," Agrawal said.

"In our view, the July data point to an economy powered by one engine rather than two: capex is doing the pulling, while mass consumption stays subdued. The variable to watch from here is crude, and how geopolitical developments feed through to prices and, in turn, to demand," Shashwat Singh, fundamental analyst at Bajaj Broking, said in a note. 
 

The following tables detail year-on-year changes in industrial output in July:

 

	July 2026	June 2026	July 2025
General	6.7%	8.8%	5.4%
Mining and Quarrying	(-)0.9%	1.6%	10.7%
Manufacturing	7.3%	9.5%	5.1%
Electricity and Gas Supply	8.7%	11.3%	2.4%
Water Supply, Sewerage, and Waste Management	7.4%	6.1%	7.5%
Primary goods	4.1%	5.4%	4.8%
Capital goods	16.1%	17.9%	5.9%
Intermediate goods	10.0%	11.5%	3.5%
Infrastructure/construction goods	6.9%	8.8%	11.2%
Consumer durables	10.5%	10.3%	3.9%
Consumer non-durables	(-)1.0%	5.6%	5.8%

 

	Mining and Quarrying		Electricity and Gas Supply		Manufacturing		Water Supply, Sewerage, and Waste Management		General
	FY27	FY26	FY27	FY26	FY27	FY26	FY27	FY26	FY27	FY26
April	106.1	110.3	121.7	116.3	118.7	111.9	146.1	137.1	118.2	112.7
May	113.1	114.7	130.1	117.9	122.2	116.2	145.1	137.6	122.5	116.7
June	110.6	108.9	131.8	118.4	125.3	114.4	145.7	137.3	124.8	114.7
July	94.4	95.3	133.5	122.8	127.4	118.7	148.4	138.2	124.8	117.0
August		90.8		119.2		116.2		138.8		114.2
September		96.4		115.6		119.0		138.4		116.5
October		105.9		105.6		112.5		141.2		111.6
November		106.9		98.7		117.3		140.5		114.6
December		117.8		111.1		125.6		141.3		123.5
January		120.6		115.0		124.0		142.7		123.0
February		114.7		107.0		119.2		143.4		117.9
March		125.4		119.2		131.4		146.3		129.7

 

Source: Ministry of Statistics and Programme Implementation

 

End

 

Reported by Radhika Tiwari

Edited by Saji George Titus

 

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