India’s industrial output grows 4.8% in July

India's industrial output growth slows in July, with manufacturing showing slight improvement, while mining and electricity growth decline.

India’s industrial output growth rose 4.8% in July, the second-slowest pace in the financial year 2024-25, from an upgraded 4.7% growth in June, even as mining and electricity growth slowed, and non-consumer durables’ production slipped a sharp 4.4%, marking the third contraction in four months.

In absolute terms, the Index of Industrial Production (IIP) slipped to a three-month low, with production levels declining 0.73% from June. Manufacturing output growth picked up to 4.6% in July, from 3.2% in June, and was the only broad segment to clock a sequential uptick over June’s levels, albeit by a tepid 1.6%.

Mining output grew a mere 3.7% from a 10.3% rise in the previous month. Electricity generation rose 7.9% in July, from 8.6% in June.

On the basis of end-use, production growth fell in four segments in July compared with their pace in June.

Capital goods output grew at the sharpest pace of 12% from a mere 3.8% uptick in June, while intermediate goods production rose 6.8%, over double the 3% pace recorded in the previous month. Primary goods growth slowed a tad to 5.9% from 6.3% in June, while infrastructure and construction goods rose 4.9% from 7.1% a month earlier.

Consumption trends remained mixed even as consumer durables’ output grew 8.2% from last August, as non-durables’ production fell a sharp 4.4%, after a 1.5% drop in June. In absolute terms, non-durables’ output was the second-lowest in nine months, while durables production was at a three-month low.

In the first four months of the fiscal, non-durables’ production has contracted 1.5% while durables have risen 10%. Sequentially, three of the six segments reported lower production volumes than June — primary goods, infrastructure and construction goods, as well as consumer durables.