New Delhi: India's industrial production growth slowed to 4.9% in April 2026, down from 5.7% in the same month a year earlier, primarily due to a contraction in the mining and quarrying sector and a slowdown in other sectors. The statistics ministry released a new Index of Industrial Production (IIP) series on Monday, with 2022-23 as the base year, replacing the previous 2011-12 base. This update includes a revised methodology and broader coverage of industrial activity.
New IIP Series Structure
The new IIP series now comprises four sub-sectors: mining (down 5.1% in April), manufacturing (up 6.2%), electricity and gas supply (up 4.9%), and water supply, sewerage, and waste management (up 6.6%). The manufacturing sector retains the highest weight at 76.1%, slightly lower than the previous 77.6%. Despite the slowdown, sequential growth improved to 4.9% in April from 3.2% in March, driven by robust performance in manufacturing and electricity generation, alleviating fears of an immediate negative impact from the West Asia crisis on the economy.
Expert Insights on Future Trends
Dipti Deshpande, principal economist at Crisil, noted: "Industrial production could remain subdued in the months ahead. The larger risk, though, is rising costs as the energy supply shock has morphed into a price shock." Among use-based categories, five of the six segments saw growth acceleration in April compared to March, except primary goods, which reflects the weak performance of the mining sector. Notably, capital goods output expanded by double digits (16%) for the sixth consecutive month, while infrastructure and construction goods output grew by 7.1%, indicating sustained strength in construction and investment activities.
Consumer and Sectoral Performance
On the consumer front, durable goods grew by 4.3%, while non-durables expanded by 2.8%. Arun Singh, chief economist at Dun & Bradstreet India, commented: "Consumer segments remain moderate, and the drag from mining points to underlying frictions in resource-linked sectors, reinforcing that the supply chain is not operating at full synchronisation. It suggests that firms are expanding output selectively." The new IIP series also provides a breakdown of electricity generation by renewable and non-renewable sources within the electricity and gas supply sector.
