Anushruti Singh
India’s Index of Industrial Production (IIP) witnessed a growth of 4.8% in July, slightly improving from 4.7% in June, according to the latest data released by the Ministry of Statistics on Thursday. The uptick was driven by positive growth rates in the mining, manufacturing, and electricity sectors, which expanded by 3.7%, 4.6%, and 7.9%, respectively.
The quick estimates of the IIP for July stood at 149.6, up from 142.7 in the same month last year. Specifically, the indices for the mining, manufacturing, and electricity sectors were recorded at 116.0, 148.6, and 220.2, respectively. Within the manufacturing sector, the “Manufacture of electrical equipment” contributed the most with a robust 28.3% growth, followed by the “Manufacture of coke and refined petroleum products” at 6.9% and the “Manufacture of basic metals” at 6.4%.
Suman Chowdhury, Executive Director & Chief Economist, Acuité Ratings & Research, commented on the positive trend: “The improvement in IIP, although modest, reflects a steady recovery in industrial activity, driven by strong growth in the electricity and manufacturing sectors. This momentum is expected to continue with the support of consumer demand and infrastructure spending.”
According to him, the consumer demand in the economy might gain some strength in the upcoming festival season, making the industrial outlook brighter for the rest of this fiscal year.
Based on use-based classification, the top three positive contributors to the IIP growth for July were primary goods, intermediate goods, and consumer durables, as highlighted by the ministry. The indices for these categories stood at 150.1 for primary goods, 164.3 for intermediate goods, and 178.7 for infrastructure/construction goods. Meanwhile, the indices for consumer durables and consumer non-durables were at 126.6 and 146.8, respectively.
India’s core sector, which includes key industries like coal, electricity, steel, and cement, recorded a 6.1% growth in July, rebounding from a slower growth rate of 4% in June, according to the Commerce Ministry. Over the first four months of the current financial year (2024-25), the core sector growth averaged 6.1%, slightly below the 6.6% growth seen in the same period last year. The combined index of these eight core industries, which accounts for 40% of the IIP, reflects the output levels of critical sectors such as cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products, and steel.
Overall, the steady growth in IIP and the rebound in the core sector indicate a resilient industrial landscape, buoyed by robust demand across key segments.
