Context
India’s Index of Industrial Production (IIP) recorded 6.7% growth in July 2026, moderating from 8.8% in June. Despite the slowdown, July registered the second-highest IIP growth since December 2025, supported mainly by manufacturing and electricity.
Explanation
- The Index of Industrial Production (IIP) measures short-term changes in the volume of production across key industrial sectors of the economy.
- It is compiled and released monthly by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
- The present IIP series has 2022–2023 as its base year.
- Under the sectoral classification, IIP comprises Manufacturing (77.63%), Mining (14.37%) and Electricity (7.99%), with manufacturing carrying the highest weight.
- IIP is also classified by use-based categories: Primary Goods, Capital Goods, Intermediate Goods, Infrastructure/Construction Goods, Consumer Durables and Consumer Non-durables.
- Capital goods and infrastructure-related production can indicate investment activity, while consumer durables and non-durables provide clues about consumption demand.
- In July 2026, manufacturing grew 7.3%, although this was lower than its June growth.
- IIP figures are initially released as Quick Estimates and subsequently revised as more complete production data become available.
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