India's industrial growth slows to 6.7% in July 2026, second-best since December
India's industrial growth rate slowed to 6.7% in July 2026, down from 8.8% in June. Despite the slowdown, this was the second-best growth recorded by the Index of Industrial Production (IIP) since December last year, primarily buoyed by the manufacturing and electricity and gas supply sectors. The manufacturing sector grew by 7.3% in July, a decrease from 9.5% in June but still faster than the previous year. Economists note a divergence in consumption trends, with rural consumption levels showing weakness.
Key Points
- India's industrial growth rate decreased to 6.7% in July 2026 from 8.8% in June.
- The July growth was the second-best performance of the Index of Industrial Production (IIP) since December last year.
- Manufacturing, electricity, and gas supply sectors were key contributors to the growth.
- The manufacturing sector grew by 7.3% in July 2026, propelled by industries like engineering, automobiles, electronics, plastic, and rubber products.
- Economists observe a divergence in consumption trends, indicating weakness in rural consumption.
Exam Facts
- Industrial growth rate: 6.7% in July 2026 (down from 8.8% in June).
- Index: Index of Industrial Production (IIP).
- Manufacturing sector growth: 7.3% in July 2026 (down from 9.5% in June).
- Chief economist, Bank of Baroda: Madan Sabnavis.
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