New Delhi, August 28: India’s industrial activities recorded robust performance in July 2026. According to data released by the Ministry of Statistics and Programme Implementation, the Index of Industrial Production (IIP) saw an annual increase of 6.7% during this month. The manufacturing sector contributed significantly to this growth, bolstering the country’s industrial output.
The manufacturing sector, which accounts for over three-quarters of the country’s industrial production index, reported a 7.3% increase in July. This sector is considered a key driver of job creation and industrial development, providing substantial employment opportunities for graduates from engineering and technical institutions.
Among the 23 industry groups within the manufacturing sector, 19 recorded positive growth. The best-performing segments included motor vehicle manufacturing, electrical equipment production, and machinery and equipment manufacturing, which saw increases of 22.2%, 28.3%, and 12.1%, respectively.
Additionally, the energy sector also showed strong performance. The electricity and gas supply sector grew by 8.7% in July, while water supply, sewage, and waste management recorded a 7.4% increase.
However, the mining sector lagged behind, experiencing a decline of 0.9%. This was the only major weak area in the industrial sector during July.
In terms of usage-based classification, the production of capital goods rose by 16.1% in July. Capital goods include machinery and equipment used in factories. This increase is seen as a sign of rising investment in the economy, which promotes future job and income generation.
Consumer demand also strengthened, with the production of consumer durables, such as electronics, refrigerators, and televisions, increasing by 10.5%. This growth was supported by rising incomes and improved consumer confidence.
Conversely, the production of consumer non-durables, including soaps, cosmetics, and daily essentials, saw a decline of 1%.
Thanks to government investment, the infrastructure and construction materials sector also performed well, with production increasing by 6.9%. The sector benefited from significant government investments in highways, ports, and railway projects, which contribute to large-scale job creation and overall economic growth.
Meanwhile, the Ministry of Statistics announced a significant change in the calculation method for the industrial production index. The ministry has decided to adopt the Producer Price Index (PPI) as a deflator instead of the Wholesale Price Index (WPI) for certain commodity groups. This change will apply to 234 groups out of the 463 in the IIP basket, representing 36.02% of the total index weight.
The ministry has revised and reissued the all-India industrial production (IIP) series based on this new standard, replacing the previously released WPI-based series from June 1, 2026.
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