India’s industrial output grows 6.7% in July as cars, electrical equipment power factories

India’s industrial production grew 6.7% from a year earlier in July, easing from 7.3% growth in June, as strong manufacturing and electricity output offset another contraction in mining.Manufacturing, which carries the biggest weight in the Index of Industrial Production (IIP), expanded 7.3% in July, according to data released by the Ministry of Statistics and Programme Implementation on Friday.Electricity and gas supply grew 8.7%, while water supply, sewerage and waste management increased 7.4%. Mining and quarrying was the only major sector to shrink, with output declining 0.9%.The IIP stood at 124.8 in July, compared with 117.0 a year earlier. The July figures are quick estimates and will be revised as more production data become available.Cars and electrical equipment power manufacturingThe strength in manufacturing was broad-based, with 19 of 23 industry groups recording higher production than a year earlier.Electrical equipment was the standout performer, with output jumping 28.3%. Production of motor vehicles, trailers and semi-trailers rose 22.2%, helped by higher output of auto components, passenger cars and commercial vehicles.Other transport equipment grew 22%, while machinery and equipment increased 12.1%. Computer, electronic and optical products recorded an 11.1% increase.Not every factory segment joined the expansion. Pharmaceutical production fell 5.6%, chemicals declined 2.7% and tobacco products dropped 12.2%.Also read: Former RBI chief Rajan urges Fed to hike rates, relaxed on rupeeInvestment-related goods show strengthOne of the stronger signals in the July data came from capital goods, a category that includes machinery and equipment used to produce other goods. Output jumped 16.1% from a year earlier.Intermediate goods grew 10%, while consumer durables increased 10.5%. Infrastructure and construction goods rose 6.9%, and primary goods grew 4.1%.Consumer non-durables—which include many everyday products that are quickly consumed—were the only use-based category to contract, with production falling 1%.Intermediate goods, capital goods and primary goods made the biggest positive contributions to overall industrial growth during the month, the ministry said.Industrial output up 6.3% so far this fiscalFor the April-July period, industrial production grew 6.3% compared with the same four months a year earlier.Manufacturing output increased 7%, while electricity and gas supply grew 8.7%. Mining remained the laggard, contracting 1.1% during the period.The ministry said its July estimates were compiled with a weighted response rate of 88.9%. The figures will be updated as additional production data are received.Also read: Motilal Oswal sees room for FY27 credit growth forecast to rise to 15.5–16%

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