India's industrial growth slows to 6.7% in July as mining contracts

India’s industrial growth slowed to 6.7% in July from 7.3% in June, government data showed. Manufacturing and electricity supported growth, while mining contracted. Capital goods recorded the strongest expansion at 16.1%, while consumer non-durables declined 1%.

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India’s industrial output growth slowed to 6.7% in July from a revised 8.8% in June, according to the Index of Industrial Production (IIP) data.

Manufacturing output rose 7.3% year-on-year in July, compared with revised growth of 9.5% in June. Electricity generation grew 8.7%, against 11.3% a month earlier.

Mining activity declined 0.9% in July after recording revised growth of 1.6% in June.

In May, the government shifted from wholesale prices to producer prices for calculating factory output.

Consumer goods show mixed performance

Output of consumer durables, including cars and mobile phones, grew 10.5% in July, compared with a revised 10.3% increase in June.

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Consumer non-durables, such as food products and toiletries, declined 1% in July. The segment had recorded revised growth of 5.6% in the previous month.

Capital goods output rose 16.1% year-on-year in July, slowing from a revised 17.9% growth in June.

Industrial output grows 6.3% in April-July

Industrial output grew 6.3% during the April-July period, compared with 4% growth in the same period a year earlier.

Within manufacturing, 19 of 23 industry groups recorded positive growth in July. Electrical equipment manufacturing grew 28.3%, while motor vehicles, trailers and semi-trailers rose 22.2%. Machinery and equipment manufacturing grew 12.1%.

The July IIP quick estimate was compiled using an 88.9% weighted response rate. The June index was revised based on updated data received from source agencies.