The core sector output accelerated to 2.4% in July, driven up mainly by higher electricity and steel production, government data showed on Thursday.
The output grew a revised 0.8% year-on-year in June.
For April-July, the annual output growth was 2.5%, data showed.
The production of crude oil declined by 0.5%, refinery products by 2.7%, fertiliser by 0.3% and cement by 2%, as per official data.
Coal output growth decelerated to 0.7% last month as against 4.1% in July 2016.
According to data, natural gas output rose by 6.6% in July.
Steel production and power generation rose to 9.2% and 5.4%, respectively in July