India’s industrial production rose by 6.7% year-on-year in July 2026, easing from an upwardly revised 8.8% in June—its highest level in over two years—but still exceeding market expectations of 6%. Despite the slowdown, growth remained above the average of the previous two years and extended the recovery from the weaker performance seen earlier in the year, when the outbreak of war in the Middle East pushed up energy prices and weighed on domestic economic conditions.
Manufacturing, which accounts for 76% of total industrial output, grew by 7.3% year-on-year, down from a revised 9.5% in June. Electricity and gas supply increased by 8.7%, compared with 11.3% previously. In contrast, mining and quarrying output fell by 0.9%, reversing from a 1.6% expansion in the prior month.
