Now Reading: India’s industrial output grows 6.7% in July on manufacturing, power
-
01
India’s industrial output grows 6.7% in July on manufacturing, power
India's industrial production grew 6.7% in July compared to 5.4% a year ago, driven by robust manufacturing and electricity sectors, data released Friday showed. The index of industrial production (IIP) growth cooled…
India's industrial production grew 6.7% in July compared to 5.4% a year ago, driven by robust manufacturing and electricity sectors, data released Friday showed. The index of industrial production (IIP) growth cooled from an upward revised 8.8% in June.
Manufacturing, which has a 76% weight in the index, grew 7.3% with 19 of 23 industry groups posting positive growth. Capital goods rose 16.1%, intermediate goods 10%, and infrastructure goods 6.9%. Electricity and gas supply expanded 8.7% due to heat wave conditions.
For the first four months of the financial year 2026-27, IIP growth stood at 6.3%, up from 4% in the same period last year. Bank of Baroda chief economist Madan Sabnavis attributed the push to government infrastructure spending creating strong backward linkages.
Indian Opinion Analysis
The sustained growth in capital and intermediate goods suggests that the government's infrastructure push is beginning to show results in factory output, a segment that had lagged for several quarters. A revival in manufacturing is critical for job creation, as the sector employs roughly 12% of India's workforce. The Reserve Bank of India's monetary policy committee, which next meets in October, will watch these numbers closely for signs of demand-pull inflation before any rate decision. The coming festive season orders will test whether the consumption side of the economy keeps pace with the production side.
Source: timesofindia.indiatimes.com
This brief was synthesised by AI from the source linked above.
