PIB TrackerIndustrial output grows 6.7% on a capital goods surge
The July 2026 index stands at 124.8 against 117.0 a year earlier; capital goods rose 16.1 per cent while consumer non-durables fell 1.0 per cent.
What happened
- The Index of Industrial Production grew 6.7 per cent year on year in July 2026.
- The general index stands at 124.8 against 117.0 in July 2025, on base 2022-23 = 100.
- Manufacturing rose 7.3 per cent and electricity and gas 8.7 per cent, while mining fell 0.9 per cent.
- Capital goods grew 16.1 per cent and consumer non-durables fell 1.0 per cent.
- The top contributing groups were motor vehicles (22.2 per cent), electrical equipment (28.3 per cent) and machinery and equipment (12.1 per cent).
For Prelims
- IIP: compiled by MoSPI and released as a quick estimate on the 28th of every month; base year 2022-23 = 100.
- Weights: manufacturing 76.062, mining and quarrying 11.053, electricity and gas 10.865, water supply and waste management 2.020.
- July 2026 growth: 6.7 per cent, against a quick estimate of 7.3 per cent for June 2026.
- Sectoral indices: mining 94.4, manufacturing 127.4, electricity and gas 133.5, water supply and waste 148.4.
- Use-based classification: six categories — primary, capital, intermediate and infrastructure/construction goods, plus consumer durables and consumer non-durables.
- Use-based growth: capital goods 16.1, consumer durables 10.5, intermediate 10.0, infrastructure 6.9, primary 4.1 and consumer non-durables -1.0 per cent.
- Coverage: 19 of 23 two-digit manufacturing groups grew; the classification used is NIC-2025.
- Response rates: 88.9 per cent for the July quick estimate and 93.0 per cent for the final revision of June.
For UPSC: The monthly figure to quote for industrial growth, and one of the few places where the use-based split lets you say what kind of growth it is. Use it on manufacturing performance, investment demand and the difference between an investment-led and a consumption-led expansion.
What it is NOT: A quick estimate is not a final figure — it is compiled at a partial response rate, 88.9 per cent this month, and is revised in later releases as source data arrive.
For Mains
Syllabus: GS3.1 · GS3.8 · Linkage L1
Anchor
The headline conceals a split: capital goods grew 16.1 per cent in the same month that the goods households buy every week shrank 1.0 per cent.
Substantiation (data)
The index at 124.8 against 117.0, growth of 6.7 per cent; manufacturing 7.3, electricity and gas 8.7, mining -0.9; capital goods 16.1 and consumer non-durables -1.0.
Exemplification
Within electrical equipment the items lifting the index were switchgear and circuit breakers, uninterruptible power supplies and optical-fibre connectors — grid and data-centre inputs rather than household purchases.
Problematisation
Mining contracted and consumer non-durables fell; an index carried by capital goods and electricity says very little about mass consumption.
Way-forward
Read the monthly print with the use-based split and the subsequent revision rather than the headline alone — June's 7.3 per cent was itself only a quick estimate.
Position
Industrial growth of this shape is a statement about investment and power demand, not about household purchasing power.
Deploys into: Indian economy + industrial policy (GS3.1, GS3.8) · reading industrial growth through the use-based classification instead of the headline rate.
Ministry of Statistics & Programme Implementation · 2026-08-28 · PRID 2304222 · PIB source ↗