India’s industrial production index saw strong growth, but it hides weak consumer demand

5 min readNew DelhiJul 31, 2026 07:21 PM IST Bangle manufacturing industries in Firozabad, UP. (Express photo by Gajendra Yadav)Earlier this week, the Ministry of Statistics and Programme Implementation released the recently updated Index of Industrial Production (IIP) data. It showed that the IIP grew by 7.3% year-on-year (YoY) in June 2026. Many things stood out about this data. First, the spike in June was the highest in 23 months, or almost two years. Moreover, it was not an isolated jump; the increase in June was the third consecutive month of accelerating YoY growth, as the chart shows. Chart.This spike comes at a time when most observers suggest that India’s growth in the current year will slow down. As such, the IIP data presents a contrasting picture. However, a closer look at the