India, Aug 29 : India’s industrial output growth moderated to 6.7% year on year in July, compared with 8.8% under the revised new series data for June, according to government figures released on Friday.
The slowdown was primarily linked to weaker performance in some sectors, particularly mining and manufacturing. Manufacturing output expanded 7.3% in July, easing from 9.5% in June, while mining and quarrying slipped back into contraction.
Electricity generation continued to support overall industrial activity, helping offset some of the weakness in mining.
Among the use based categories, capital goods recorded particularly strong growth, expanding 16.1% during the month. The performance points to continued momentum in investment related activity despite moderation in headline industrial production.
Consumer non-durables, however, remained under pressure, recording a decline during July. The divergence between investment oriented sectors and consumer facing segments highlights uneven momentum across the industrial economy.
The latest figures come against the backdrop of a broader debate over India’s growth outlook amid global trade uncertainty, elevated energy costs and changing monetary policy expectations in major economies.
Despite the moderation, the July expansion indicates that India’s industrial sector continued to grow at a healthy pace. Strong capital goods activity could provide support to investment and manufacturing in the months ahead.
The data will also be closely watched by policymakers and businesses as they assess domestic demand, production trends and the broader trajectory of economic growth during the current financial year.