IIP growth at 6.7% in July, compared with 8.8% in June under new series

India's industrial output slowed to a 6.7% growth rate in July, down from a revised 8.8% increase in June, according to the Index of Industrial Production (IIP). Manufacturing output expanded by 7.3% year-on-year in July, a decline from the revised 9.5% growth in June. Meanwhile, electricity generation rose 8.7% year-on-year, compared to 11.3% growth in June. Mining activity contracted by 0.9% in July, after expanding by 1.6% in June.

In May, the government switched from using wholesale prices to producer prices for calculating factory output. Consumer goods showed mixed performance. Output of consumer durables, including cars and mobile phones, increased by 10.5% in July, compared to a revised 10.3% rise in June. However, consumer non-durables, such as food products and toiletries, declined by 1% in July, down from a revised 5.6% growth the previous month.

Capital goods output grew by 16.1% year-on-year in July, slowing from a revised 17.9% increase in June. During the April-July period, industrial output grew by 6.3%, compared to 4% growth in the same period a year earlier. Within manufacturing, 19 out of 23 industry groups recorded positive growth in July. Electrical equipment manufacturing surged by 28.3%, while motor vehicles, trailers, and semi-trailers rose by 22.2%.

Machinery and equipment manufacturing expanded by 12.1%. The July IIP quick estimate was based on an 88.9% weighted response rate, and the June index was revised using updated data from source agencies.