Data Alert
India IIP growth moderates to 5-month low of 4.1% in March
This story was originally published at 18:09 IST on 28 April 2026
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--India Mar IIP growth 4.1% vs 3.9% year ago
--Informist Poll estimated Mar IIP growth at 2.6%
--India Feb IIP growth revised to 5.1% vs 5.2% provisional
--India FY26 IIP growth 4.1% vs 4.0% year ago
--India Mar mining sector output growth 5.5% vs 1.2% year ago
--India Mar manufacturing sector output growth 4.3% vs 4.0% year ago
--India Mar electricity sector output growth 0.8% vs 7.5% year ago
--India Mar primary goods output growth 2.2% vs 3.9% year ago
--India Mar capital goods output growth 14.6% vs 3.6% year ago
--India Mar intermediate goods output growth 3.3% vs 3.8% year ago
--India Mar infrastructure goods output growth 6.7% vs 9.9% year ago
--India Mar consumer durables output growth 5.3% vs 6.9% year ago
--India Mar consumer non-durables output growth 1.1% vs -4.0% year ago
--India Mar IIP growth of 4.1% lowest in 5 months
NEW DELHI - Growth in India's industrial output as measured by the Index of Industrial Production, fell to a five-month low in March due to a significant slowdown in the pace of electricity sector activity. Data released Tuesday by the statistics ministry showed IIP growth moderated to 4.1% in March from 5.1% in February.
At 4.1%, the March IIP growth was higher than expected. Economists polled by Informist had estimated growth in India's industrial production at 2.6% in March. For 2025-26 (Apr-Mar), India's industrial output grew 4.1%, compared with the 4.0% growth in FY25.
Industrial output had risen 3.9% in March 2025 and the February print was revised lower to 5.1%, from the provisional estimate of 5.2%.
The industrial production growth was primarily driven by the mining sector. The mining sector output rose 5.5% on year in March, from 3.1% on year in February.
The manufacturing sector output, which has the highest weightage in the IIP, grew 4.3% on year in March. This was the slowest annual pace of growth since October. In February, the manufacturing sector saw 5.9% growth in output. Within manufacturing, the other transport equipment segment grew the most at 20.8% on year in March, followed by motor vehicles, trailers and semi-trailers at 18.1%, machinery and equipment at 11.2%, and basic metals at 8.6%.
However, other manufacturing, wearing apparel, and tobacco products segments fell the most at 29.8%, 14.6%, and 10%, respectively, in March. The manufacture of chemicals and chemical products, which comprises nearly 8% of the index, shrank 3.5% on year in March.
Electricity production grew only 0.8% on year in March, the slowest in four months. The electricity sector output rose 2.3% on year in February and 7.5% annually in March 2025. India's industrial output likely slowed due to supply chain constrains ensuing from the war in West Asia, though the impact was less than analysts had expected.
"The stronger-than-expected IIP growth performance contrasts with the 0.4% contraction seen in core output, suggesting that the non-core portion of industrial output rose at a robust 7.8% in the month, shrugging off the expected adverse impact of the onset of the West Asia crisis," Aditi Nayar, chief economist at ICRA, said.
Within the use-based classification, three of the six categories performed worse in March than February. The intermediate goods segment output rose 3.3% in March, lower than 7.7% in February. Infrastructure or construction goods output grew 6.7% on year last month, slower than 11.1% in February. Consumer durable output growth slowed to 5.3% in March from 7.1% the previous month.
"The March data captures only a part of the shock as uncertainty and weak producer sentiment have yet to fully manifest in production data," Dipti Deshpande, principal economist at Crisil, said. "The deeper impact is expected to show up down the road, particularly in the first quarter of this fiscal."
On other hand, the capital goods segment saw the quickest output growth in March at 14.6% on year, highest in 29 months, from 12.4% in February. The output in consumer non-durable segment rose 1.1% on year in March after contracting 0.5% on year in February. The primary goods segment output grew 2.2% in March, higher than 1.8% the previous month.
The following tables detail year-on-year changes in industrial output in March:
| March 2026 | February 2026 | March 2025 | |
| General | 4.1% | 5.1% | 3.9% |
| Mining | 5.5% | 3.1% | 1.2% |
| Manufacturing | 4.3% | 5.9% | 4.0% |
| Electricity | 0.8% | 2.3% | 7.5% |
| Primary goods | 2.2% | 1.8% | 3.9% |
| Capital goods | 14.6% | 12.4% | 3.6% |
| Intermediate goods | 3.3% | 7.2% | 3.8% |
| Infrastructure/construction goods | 6.7% | 11.1% | 9.9% |
| Consumer durables | 5.3% | 7.1% | 6.9% |
| Consumer non-durables | 1.1% | (-)0.5% | (-)4.0% |
| Mining | Electricity | Manufacturing | General | |||||
| FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | |
| April | (-)0.2% | 6.8% | 1.7% | 10.2% | 3.1% | 4.2% | 2.6% | 5.2% |
| May | (-)0.1% | 6.6% | (-)4.7% | 13.7% | 3.2% | 5.1% | 1.9% | 6.3% |
| June | (-)8.7% | 10.3% | (-)1.2% | 8.6% | 3.7% | 3.5% | 1.5% | 4.9% |
| July | (-)7.2% | 3.8% | 3.7% | 7.9% | 6.0% | 4.7% | 4.3% | 5.0% |
| August | 6.6% | (-)4.3% | 4.1% | (-)3.7% | 3.8% | 1.2% | 4.1% | 0.0% |
| September | (-)0.4% | 0.2% | 3.1% | 0.5% | 5.6% | 4.0% | 4.6% | 3.2% |
| October | (-)1.8% | 0.9% | (-)6.9% | 2.0% | 2.0% | 4.4% | 0.5% | 3.7% |
| November | 5.8% | 1.9% | -1.5% | 4.4% | 8.5% | 5.5% | 7.2% | 5.0% |
| December | 6.9% | 2.7% | 6.3% | 6.2% | 8.4% | 3.7% | 8.0% | 3.7% |
| January | 4.3% | 4.4% | 5.1% | 2.4% | 5.3% | 5.8% | 5.1% | 5.2% |
| February | 3.1% | 1.6% | 5.1% | 3.6% | 6.0% | 2.8% | 5.2% | 2.7% |
| March | 5.5% | 1.2% | 0.8% | 7.5% | 4.3% | 4.0% | 4.1% |
3.9% |
| Mining | Manufacturing | Electricity | General | |
| FY26 | 1.40% | 5.00% | 1.00% | 4.10% |
| FY25 | 3.00% | 4.10% | 5.20% | 4.00% |
| FY24 | 7.50% | 5.50% | 7.10% | 5.90% |
| FY23 | 5.80% | 4.70% | 8.90% | 5.20% |
| FY22 | 12.20% | 11.80% | 7.90% | 11.40% |
| FY21 | (-)7.8% | (-)9.6% | (-)0.5% | (-)8.4% |
| FY20 | 1.60% | (-)1.4% | 1.00% | (-)0.8% |
| FY19 | 2.90% | 3.90% | 5.20% | 3.80% |
| FY18 | 2.30% | 4.60% | 5.40% | 4.40% |
| FY17 | 5.30% | 4.40% | 5.80% | 4.60% |
| FY16 | 4.30% | 2.80% | 5.70% | 3.30% |
| FY15 | (-)1.4% | 3.80% | 14.80% | 4.00% |
| FY14 | (-)0.1% | 3.60% | 6.10% | 3.30% |
| FY13 | (-)5.3% | 4.80% | 4.00% | 3.30% |
End
Reported by Shweta
Edited by Akul Nishant Akhoury
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