Industrial production under the new series rose by 4.9% in April 2026 compared to 3.2% March. The uptick was driven largely by higher output by the manufacturing sector. In the previous year (FY26), industrial output, measured by Index of Industrial Production (IIP), in the same month rose by 5.7%.
The government on Monday released the first Index of Industrial Production (IIP) data under the revised 2022-23 base year series.
According to the Ministry of Statistics and Programme Implementation (MoSPI), the IIP stood at 118.9 in April 2026 compared with 113.1 in the year-ago period. Manufacturing, which carries a weight of over 76% in the index, grew 6.2% year-on-year, providing the biggest boost to overall industrial activity.
The revised IIP series, with 2022-23 as the base year, replaces the earlier 2011-12 series and incorporates a broader industrial coverage, including gas supply and water supply, sewerage and waste management activities, along with an updated item basket and weighting structure.
Among the four sectors covered under the new series, mining and quarrying contracted 5.1% in April, while electricity and gas supply grew 4.9% and water supply, sewerage and waste management expanded 6.6%.
Within manufacturing, 17 of the 23 industry groups recorded positive growth during the month. The top-performing segments were manufacture of electrical equipment, which grew 19.2%, other transport equipment at 18.9%, textiles at 15.6%, machinery and equipment at 12.9%, and motor vehicles, trailers and semi-trailers at 12.7%.
According to MoSPI, the strongest contributors to manufacturing growth were motor vehicles, electrical equipment, and machinery and equipment. Growth in the automobile segment was led by auto components, passenger cars and wheel rims, while electrical equipment production was supported by switchgear, carbon electrodes and transformers.
Despite a relatively strong performance, experts opine that going forward the industrial sector stress would be visible due to weaker global demand and supply chain disruptions.
“The energy supply shock caused by the conflict in West Asia has morphed into a price shock, with the costs of fuel, transport and other imported inputs increasing. Cost pressures are already visible, with wholesale inflation jumping to a 42-month high of 8.3% in April, along with consecutive increases in retail prices of diesel and petrol,” Dipti Deshpande, Principal Economist, Crisil Ltd.
