India's industrial output measured by the Index of Industrial Production moderated to six point seven per cent in July from seven point three per cent in June as mining contracted while manufacturing remained firm. Data from the National Statistical Office showed mining and quarrying output fell by zero point nine per cent in July. Manufacturing, which accounts for over 76 per cent of the IIP, grew by seven point three per cent and electricity and gas supply rose by eight point seven per cent. Rajni Thakur, chief economist at L&T Finance, said capital goods production grew 16 per cent, intermediate goods 10 per cent and consumer durables 11 per cent, indicating broad strength. She added that the trends supported overall industrial activity. Manufacturing expansion was broad-based as 19 of 23 industry groups logged gains. Electrical equipment rose 28.3 per cent, motor vehicles 22.2 per cent, other transport equipment 22 per cent and machinery 12.1 per cent, while non-metallic minerals fell 12.5 per cent and fuel minerals declined one point three per cent. Four sectors contracted in July — pharmaceuticals, tobacco products, chemical products and wearing apparel — with tobacco falling by more than 12 per cent. Passenger vehicle sales, an urban demand indicator, grew 34.3 per cent year on year and tractor sales rose 20.5 per cent, while consumer non-durables weakened with IIP growth slipping to minus one per cent from five point six per cent, according to Dharmakirti Joshi, chief economist at Crisil. For April to July, IIP growth was six point three per cent against four per cent a year earlier. Economists warned growth was expected to moderate in the second half of the fiscal year as Goods and Services Tax rationalisation benefits fade and below-normal rainfall could weigh on rural activity.