<p>New Delhi: India's industrial production growth rose to a four-month high of 3.5% in July, sharply higher from 1.5% in the previous month, driven by rebound in manufacturing activities, as per data released by the National Statistics Office on Thursday.</p><p>The factory output growth, measured by the Index of Industrial Production (IIP), was 5% in July 2024.</p><p>Manufacturing sector growth rose to 5.4% in July from 4.7% recorded in the same month last year. However, mining production dipped by 7.2% year-on-year. Power production growth slowed to 0.6% in July from 7.9% recorded in the same month last year.</p><p>Consumption-oriented sectors grew due to both domestic and export performance. Consumer durables improved markedly (7.7% vs 2.8%), driven by automobiles and electronic products.</p>.Industrial output growth slows to 10-month low of 1.5% in June.<p>Consumer non-durables saw only a smaller rise (0.5% vs -0.9%) as food products remained weak. The coming months could see some softening of these exports, weighed by higher US tariffs and from slower growth with trade partners.</p><p>"But an improvement in domestic consumption, particularly led by stronger rural demand, could provide some offset," said Dipti Deshpande, Principal Economist, Crisil.</p><p>On the use-based side, all the six categories recorded an improvement in their growth performance in July 2025 vis-à-vis June 2025, said Aditi Nayar, Chief Economist at ICRA.</p><p>The output for infrastructure/construction goods surged to a 21-month high of 11.9%, aided by robust growth in construction inputs such as cement and steel, suggesting that construction activity is likely to have remained strong in the month.</p><p>Besides, the growth in consumer durables output rose to a 7-month high of 7.7% in the month, likely aided by pre-festive stocking, in line with the pickup in growth of GST e-way bills.</p><p>Interestingly, capital goods output has risen by a healthy 8.6% during April-July 2025, supported by factors such as machinery exports and Government capex. The latter is likely to report a year-on-year slowdown in the months ahead, on last year's back-ended base. Moreover, the outlook for private capex activity remains lacklustre, owing to the heightened global uncertainty, particularly around the tariff-related developments and their impact on India’s exports.</p><p>Out of 23 sectors, 12 had a higher growth than the industrial output in July 2025, highest since August 2024 (13). The combined weight of these 12 sectors in July 2025 was 41.6% (June 2025: 46.2%). Sectors such as manufacture of basic metals, fabricated metal products, electrical equipment, other transport equipment, recorded double-digit output growth in July 2025, said Paras Jasrai, Associate Director, India Ratings and Research.</p>
<p>New Delhi: India's industrial production growth rose to a four-month high of 3.5% in July, sharply higher from 1.5% in the previous month, driven by rebound in manufacturing activities, as per data released by the National Statistics Office on Thursday.</p><p>The factory output growth, measured by the Index of Industrial Production (IIP), was 5% in July 2024.</p><p>Manufacturing sector growth rose to 5.4% in July from 4.7% recorded in the same month last year. However, mining production dipped by 7.2% year-on-year. Power production growth slowed to 0.6% in July from 7.9% recorded in the same month last year.</p><p>Consumption-oriented sectors grew due to both domestic and export performance. Consumer durables improved markedly (7.7% vs 2.8%), driven by automobiles and electronic products.</p>.Industrial output growth slows to 10-month low of 1.5% in June.<p>Consumer non-durables saw only a smaller rise (0.5% vs -0.9%) as food products remained weak. The coming months could see some softening of these exports, weighed by higher US tariffs and from slower growth with trade partners.</p><p>"But an improvement in domestic consumption, particularly led by stronger rural demand, could provide some offset," said Dipti Deshpande, Principal Economist, Crisil.</p><p>On the use-based side, all the six categories recorded an improvement in their growth performance in July 2025 vis-à-vis June 2025, said Aditi Nayar, Chief Economist at ICRA.</p><p>The output for infrastructure/construction goods surged to a 21-month high of 11.9%, aided by robust growth in construction inputs such as cement and steel, suggesting that construction activity is likely to have remained strong in the month.</p><p>Besides, the growth in consumer durables output rose to a 7-month high of 7.7% in the month, likely aided by pre-festive stocking, in line with the pickup in growth of GST e-way bills.</p><p>Interestingly, capital goods output has risen by a healthy 8.6% during April-July 2025, supported by factors such as machinery exports and Government capex. The latter is likely to report a year-on-year slowdown in the months ahead, on last year's back-ended base. Moreover, the outlook for private capex activity remains lacklustre, owing to the heightened global uncertainty, particularly around the tariff-related developments and their impact on India’s exports.</p><p>Out of 23 sectors, 12 had a higher growth than the industrial output in July 2025, highest since August 2024 (13). The combined weight of these 12 sectors in July 2025 was 41.6% (June 2025: 46.2%). Sectors such as manufacture of basic metals, fabricated metal products, electrical equipment, other transport equipment, recorded double-digit output growth in July 2025, said Paras Jasrai, Associate Director, India Ratings and Research.</p>