Industrial Output Growth Moderates — Revised Data

Industrial Output Growth Moderates Under Revised Series

Why in the News ?

The government has released the Index of Industrial Production (IIP) under a revised 2022-23 base year, showing industrial output growth of 4.9% in April 2026, lower than the 5.8% growth recorded in April 2025 under the earlier series.

Industrial Performance Under the New IIP Series

• India’s industrial output, measured by the Index of Industrial Production (IIP), grew by 4.9% in April 2026.
• The new series adopts 2022-23 as the base year, replacing the earlier 2011-12 base year.
• Coverage has been expanded to include water supply, sewerage and waste management, and gas supply, alongside the traditional sectors of mining, manufacturing, and electricity.
• Among sectoral indices, mining and quarrying contracted by 5.1%, while manufacturing grew by 6.2%.
• The electricity and gas supply sector recorded growth of 4.9%, whereas water supply and waste management activities expanded by 6.6%.
• The revised series offers improved sectoral classification and greater data granularity.

Sector-Wise Trends and Key Findings

• The manufacturing sector, which accounts for nearly 75% of the IIP basket, remained the primary driver of industrial growth.
• Industries such as electrical equipment manufacturing recorded strong growth of 19.2%.
• However, several industries witnessed contraction, including coke and refined petroleum products, wearing apparel, and wood products.
• Under use-based classification, growth in capital goods and infrastructure/construction goods accelerated to 16% and 7.1%, respectively.
• Growth in primary goods, consumer durables, and consumer non-durables slowed compared to the previous year.
• The revised basket now includes 1,042 products grouped into 463 item categories, compared to 839 products earlier.