Indian industrial production growth was reported to be 6.7 per cent in July. This is mainly due to the strong performance of manufacturing industries in the country. The latest growth shows that there is some sort of momentum in the growth of industries in the country.

Manufacturing has been a main player in the growth of industries. In fact, the manufacturing industry contributes a considerable portion of industrial production of the country and employment among others. The growth of industries is happening at a time when the government is keen to develop the manufacturing industry.

Some of the policies of the Indian government have influenced the growth of manufacturing industries.
Index of Industrial Production (IIP), on the other hand, measures the output across three major segments of the industry including the manufacturing, mining and electricity sector. Generally speaking, manufacturing usually takes up the largest weightage in the index.

July figures might be regarded as good news for the economy as a whole as long as the trend carries forward into the next months. Robust industrial production is one of the signs which may lead to more business activities and greater material usage in the industry.

However, the coming economic data is still required for analysts to see how the growth trend is sustainable. Factors such as domestic consumption, exports, interest rates, commodity prices and global economic performance are among those that could affect future industrial production.
It is important to mention that the recent increase in production is occurring at a time when India is striving to develop its status as a major manufacturing base in the world. In order to do so, there has been increased investment in industries like electronics, automotive industry, engineering and more.

Since the manufacturing sector is responsible for the increase in July, the positive sign of a 6.7 percent increase in industrial production is observed.