New Delhi: India’s industrial activity continued its upward trajectory in July 2026, with the Index of Industrial Production (IIP) registering 6.7 per cent year-on-year growth, signalling sustained momentum across key segments of the economy.
The latest Quick Estimates show that manufacturing remained the principal contributor to industrial expansion, growing 7.3 per cent during the month. Electricity and gas supply recorded an even stronger performance, rising 8.7 per cent, while water supply, sewerage and waste management posted 7.4 per cent growth.
Manufacturing Remains the Main Growth Engine
The manufacturing sector, which carries the largest weight in the IIP, continued to provide the bulk of industrial momentum. Nineteen of the 23 manufacturing industry groups recorded year-on-year growth in July, pointing to a broad-based improvement rather than growth concentrated in just a few industries.
The strongest gains came from industries linked to machinery, automobiles and electrical equipment. Electrical equipment manufacturing surged 28.3 per cent, while the manufacture of motor vehicles, trailers and semi-trailers grew 22.2 per cent. Machinery and equipment production also recorded a healthy 12.1 per cent increase.
The performance suggests continued strength in industries connected to capital formation, infrastructure, transportation and consumer demand.
Electricity and Gas Supply Shows Strong Momentum
Electricity and gas supply emerged as another major contributor to the July expansion, registering 8.7 per cent growth over the same month last year.
The increase in electricity-related output provides an important indication of economic activity because power demand is closely linked to industrial production, commercial operations and broader economic activity.
Water supply, sewerage and waste management also recorded 7.4 per cent growth, adding further support to the overall industrial performance.
Mining Remains a Weak Spot
Not all segments of the industrial economy expanded at the same pace. Mining and quarrying output declined 0.9 per cent year-on-year in July.
The contraction stands in contrast to the strong performance of manufacturing and electricity, highlighting a divergence among India’s major industrial sectors.
A sustained recovery in mining could therefore provide an additional boost to overall industrial output in the months ahead.
IIP Index Moves Higher
The overall IIP stood at 124.8 in July 2026, compared with 117.0 in the corresponding month of 2025.
Under the new IIP series, which uses 2022-23 as the base year, manufacturing recorded an index level of 127.4, electricity and gas supply stood at 133.5, water supply, sewerage and waste management at 148.4, while mining and quarrying stood at 94.4.
The revised base year is intended to provide a more representative picture of the structure and composition of India’s industrial sector.
Industrial Momentum Holds Up
July’s 6.7 per cent growth comes after 7.3 per cent expansion in June, indicating that industrial production has maintained a relatively strong pace despite a modest sequential moderation.
The composition of growth is particularly significant. Strong output in automobiles, electrical equipment and machinery points towards healthy activity in several manufacturing-intensive segments, while rising electricity and gas supply suggests continued demand from the broader economy.
At the same time, the decline in mining remains an area to watch, particularly because raw materials and extractive industries form an important part of the industrial supply chain.
Data Subject to Revision
The July figures are Quick Estimates and may be revised in subsequent releases as additional information becomes available. The IIP is released by the Ministry of Statistics and Programme Implementation (MoSPI) on the 28th of every month, or the next working day when the 28th falls on a holiday.
The index is compiled using data received from source agencies, which collect information from producing factories and establishments across the country.
Outlook
The July numbers offer a positive reading for India’s industrial economy, with manufacturing continuing to act as the central engine of growth and electricity and gas supply registering strong expansion.
The performance of automobiles, electrical equipment and machinery is particularly encouraging, suggesting that industrial investment and production activity remain supportive.
However, the mining contraction shows that the recovery is not uniform across the industrial landscape. The ability of manufacturing to maintain its momentum, combined with a potential improvement in mining output, will be crucial for sustaining India’s industrial growth trajectory.
With industrial production growing 6.7 per cent in July, India’s manufacturing engine continues to show resilience—keeping the country’s broader growth story firmly supported by its productive sectors.