India's July Industrial Output Growth Slows To 6.7% As Mining Contracts

India’s industrial output growth slowed to 6.7% in July from a revised 8.8% in June, with a contraction in mining and slower expansion in manufacturing and electricity weighing on overall growth, according to data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Friday.

The July reading marks the fourth monthly release under the new Index of Industrial Production (IIP) series. The industrial output had grown 5.4% in July 2025.

The IIP stood at 124.8 in July, compared with 117.0 a year earlier, the ministry said.

Manufacturing, which has the largest weight in the IIP, expanded 7.3% in July, down from 9.5% in June, according to the government data. Of the 23 industry groups tracked at the 2-digit level, 19 recorded year-on-year growth.

Electrical equipment was the fastest-growing major manufacturing group, rising 28.3%, followed by motor vehicles, trailers and semi-trailers at 22.2% and machinery and equipment not elsewhere classified at 12.1%.

The four manufacturing groups that contracted were pharmaceuticals at -5.6%, tobacco products at -12.2%, chemical products at -2.7% and wearing apparel at -0.6%.

The government said growth in motor vehicles was supported by auto components, passenger cars and commercial vehicles, while electrical equipment benefited from items including switchgear, UPS and solid-state drives.

Mining Slips Into Contraction

Mining and quarrying contracted 0.9% in July, reversing the growth recorded in June. The sector had expanded 10.7% in July 2025.

The decline was led by non-metallic minerals, which fell 12.5%, and fuel minerals, which contracted 1.3%. Metallic minerals provided some support, growing 24.3%.

Electricity and gas supply remained the fastest-growing broad sector, increasing 8.7%, although this was slower than its 11.3% expansion in June.

Water supply, sewerage and waste management grew 7.4%.

Capital Goods Lead Use-Based Growth

Capital goods recorded the strongest growth among the major use-based categories, expanding 16.1%, followed by intermediate goods at 10.0% and infrastructure and construction goods at 6.9%.

Consumer durables grew 10.5%, while consumer non-durables contracted 1.0%. Consumer non-durables had grown 5.6% in June, marking a reversal in momentum.

The government said the July IIP estimates were compiled with an 88.9% weighted response rate and will be revised in subsequent releases.