July industrial output grows 6.7%; mining turns drag

New Delhi: Industrial output grew 6.7 per cent year-on-year in July 2026, slowing from the revised 8.8 per cent growth recorded in June, mainly due to a contraction in the mining sector, government data showed on Friday. This is the fourth monthly Index of Industrial Production (IIP) data under the new series.

According to the National Statistics Office (NSO), manufacturing output grew 7.3 per cent in July, while electricity and gas supply rose 8.7 per cent. Mining and quarrying, however, contracted 0.9 per cent, against a 10.7 per cent growth a year ago.

The IIP growth in July 2025 was 5.4 per cent. The revised estimate for June was raised to 8.8 per cent from the earlier provisional estimate of 7.3 per cent. Water supply, sewerage and waste management grew 7.4 per cent in July. In manufacturing, 19 of the 23 industry groups recorded positive year-on-year growth.

The top contributors were manufacture of electrical equipment, which grew 28.3 per cent, motor vehicles, trailers and semi-trailers at 22.2 per cent, and machinery and equipment at 12.1 per cent. Within motor vehicles, auto components, passenger cars and commercial vehicles made significant contributions to growth, while electrical apparatus, UPS and solid-state drives, and end-face connectors for optical fibres and cables supported growth in electrical equipment.