New Delhi, Aug 28 : India's industrial growth, based on the Index of Industrial Production (IIP), rose to a four-month high of 3.5 per cent in July, driven by a strong performance in the manufacturing sector, according to data released by the Ministry of Statistics on Thursday.

The industrial growth rate has accelerated in July from 1.5 per cent in June.

The data showed that the manufacturing sector, which provides quality jobs for the young graduates passing out of the country's universities and engineering institutes, registered a robust 5.4 per cent growth in July this year over the same month of the previous year.

Electricity generation recorded a marginal 0.6 per cent growth. However, the mining sector proved to be a laggard with a (-) 7.2 per cent contraction in output during the month due to the heavy monsoon rains, which affected production.

Within the manufacturing sector, 14 out of 23 industry groups recorded a positive growth in July compared to the same month of the previous year.

The top three positive contributors during the month are "Manufacture of basic metals", such as steel products, recorded a 12.7 per cent growth, the "Manufacture of electrical equipment" such as switchgear, circuit breakers, control panels and transformers, registered a 15.9 per cent growth while the third group of "Manufacture of other nonmetallic mineral products", which includes cement, clocked a 9.5 per cent growth.

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by a robust 5 per cent in July. This segment reflects the real investment taking place in the economy, which has a multiplier effect on the creation of jobs and incomes going ahead. The production of consumer durables such as refrigerators, air conditioners and TV sets increased by 7.7 per cent during the month, reflecting the rise in demand for these products with a rise in incomes.

The infrastructure and construction sector clocked a double-digit surge of 11. 9 per cent on the back of big-ticket government projects being implemented in the highways, railways, and ports sectors.

/IANS