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29 July 2026

Industrial growth and economic performance

The Index of Industrial Production (IIP) is a key macroeconomic indicator frequently cited in UPSC Mains answers to substantiate arguments regarding industrial growth, manufacturing performance, and economic recovery.

1 min read Day 10 of 15 2 questions 1 prelims

Notes

  • India's Index of Industrial Production (IIP) growth reached a 23-month high of 7.3% in June 2026.
  • Manufacturing sector output grew by 7.8% in June 2026, the highest in 23 months.
  • Electricity and gas supply sector growth hit a 25-month high of 10.6%, partly attributed to heatwave-induced demand and a low base effect.
  • Capital goods sector growth accelerated to 14.2% in June 2026 compared to 3.45% in June 2025.
  • Consumer durables grew by 7.7% and consumer non-durables by 4.9%, indicating a recovery in consumer demand.
  • Intermediate goods recorded 9.3% growth, supporting near-term supply chain stability.
  • Macroeconomic risks include a lower-than-expected monsoon and geopolitical uncertainty stemming from the conflict in West Asia.

Part of a longer story

This is day 10 of 15 in Upgrades to India's statistical databases, which has been running since 21 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Analyze the factors contributing to the recent surge in India's industrial growth as reflected in the latest Index of Industrial Production (IIP) data. What are the potential headwinds that could impact this momentum in the near future? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The recovery in consumer demand and robust performance in capital goods are critical indicators of economic health. Discuss the significance of these sectors in sustaining India's industrial growth trajectory and evaluate the role of external geopolitical factors in shaping domestic economic stability. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which organization is responsible for releasing the Index of Industrial Production (IIP) data in India?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-29/industrial-growth-and-economic-performance