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Economic activity growth eases to 11.4% in July from 12.1% in June: ICRA

Mining, electricity, e-way bills and domestic air traffic weighed on growth in July, while cement and coal output strengthened and unemployment declined

Hemlata Samant New Delhi 3 min read Last Updated : Aug 24 2026 | 8:57 PM IST

The year-on-year (Y-o-Y) expansion in economic activity eased to 11.4 per cent in July from 12.1 per cent in June, after rising continuously for the past three months, as measured by the ICRA Business Activity Monitor.

Mining output, electricity generation, GST e-way bill generation, and domestic airline passenger traffic largely drove the deterioration in the Y-o-Y growth of the ICRA Business Activity Monitor in July 2026 vis-à-vis June 2026. The Y-o-Y performance of eight of the 16 constituent indicators weakened in July compared to June.

The growth in core sector output also eased to 5.4 per cent in July 2026 from an upwardly revised 6 per cent in June 2026, amid a deterioration in the performance of five of the nine sectors.

5 per cent in July 2026. Electricity generation and steel output also recorded slower growth, while fertiliser and crude oil output saw steeper contractions. 1 per cent, indicating that construction activity likely remained healthy.

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