NEW DELHI: Industrial production grew 6.7% in July as compared to 5.4% expansion a year ago as the manufacturing and electricity sector saw robust growth, the index of industrial production (IIP) data released Friday showed.Sequentially, the industrial production cooled from an upward revised figure of 8.8% in June. For the first four months of the financial year 2026-27, the IIP growth stood at 6.3%, as compared to 4% in the previous financial year.
Among the sub sectors – the manufacturing sector, which has a weight of 76% in the index, grew 7.3%, as 19 out of 23 industry groups witnessed positive growth. This included industries like engineering (electric and non-electrical) and automobiles (all kinds of transport), besides electronics and plastic and rubber products, beverages, wood, paper, and non-metallic minerals. Along with, the capital goods (16.1%), intermediate goods (10%) and infra goods (6.9%) sector also did well, which is a positive sign for the revival in manufacturing, which has been on the cards for some time.“The push given by govt to infra in the four months has forged strong backward linkages,” said Bank of Baroda chief economist Madan Sabnavis. The industries, which lagged in terms of negative growth were, tobacco products, apparel, chemicals, pharma. Export markets were subdued for textiles and pharma, which could have affected growth, in the face of renewed hostilities in West Asia, which threaten to disrupt supply chains.Electricity and gas supply (8.7%) recorded robust expansion on account of heat wave conditions. water supply, sewage and waste management. Newly added industrial activity group, grew 7.4%.
