(IANS File Photo)
New Delhi, August 28 (IANS) India's industrial production clocked a 6.7 per cent growth in July this year compared to the same month of the previous year, driven by a robust performance of the manufacturing sector, according to the data released by the Ministry of Statistics and Programme Implementation on Friday.
The manufacturing sector, which accounts for more than three-fourths of the index of industrial production (IIP), posted an impressive 7.3 per cent growth during July compared to the same month of the previous year. The sector plays a key role in providing quality jobs to the young graduates passing out from the country’s engineering institutes and universities.
Within the manufacturing sector, 19 out of 23 industry groups have recorded a positive growth in July over the same month last year. The top three positive contributors for the month in this segment are manufacture of motor vehicles, which recorded a 22.2 per cent growth, manufacture of electrical equipment (28.3 per cent), and manufacture of machinery and equipment (12.1 per cent).
The electricity and gas supply sector recorded an 8.7 per cent increase during July, while water supply, sewerage & waste management posted a 7.4 per cent growth.
However, the mining sector proved to be a laggard, posting a negative growth of (-) 0.9 per cent during the month.
The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, jumped by a robust 16.1 per cent in July this year. This segment reflects the real investment taking place in the economy, which has a multiplier effect on the creation of jobs and incomes going ahead.
There was also a double-digit increase of 10.5 per cent in the production of consumer durables such as electronic goods, refrigerators, and TVs during July, reflecting the higher consumer demand for these items amid rising incomes. Consumer non-durables such as soaps and cosmetics, however, posted a negative growth of (-) 1.0 per cent during the month.
The infrastructure and construction goods sector also recorded a growth of 6.9 per cent during the month, driven by the government’s big-ticket investments in highways, ports and railway projects which create large-scale employment and drive up the overall economic growth rate.
The Ministry of Statistics and Programme Implementation has decided to adopt output PPI as deflator in place of WPI for item groups for which output is collected in value terms. This affects 234 out of the 463 item groups in the IIP basket, representing 36.02 per cent of the total index weight, the official statement said.
The ministry has now revised and released the entire IIP 2022-23 series with Output PPI, and it supersedes the earlier WPI-based IIP 2022–23 series released on 1st June 2026, the statement explained.
The ministry released the new series of the All India Index of Industrial Production (IIP) with base year 2022–23 on 1st June 2026, using the Wholesale Price Index (WPI) as the deflator.
