India's industrial output grows by 4.9% in April

New Delhi: India’s industrial output grew by 4.9% year-on-year in April, supported by a strong growth in manufacturing and electricity sector, as per the new series of the Index of Industrial Production (IIP) data based on 2022-23 base year released by the National Statistics Office (NSO) on Monday.

Manufacturing sector recorded a robust 6.2% expansion during the month under review. Electricity, gas supply and water supply registered a growth of 4.9% while sewerage & waste management witnessed a growth of 6.6% year-on-year. However, there was 5.1% contraction in mining and quarrying output.

In March the industrial output growth as measured by the Index of Industrial Production (IIP) stood at 3.2%.

This is the first data of IIP under the new base year 2022-23. The old base year was 2011-12.

Under the new series IIP growth for the past three financial years has been revised upwards. For 2025-26, the IIP growth has been revised upward to 4.3% under 2022-23 series from 4.1% under the 2011-12 series.

For 2024-25 it has been revised upward to 6.4% from 4% and for 2023-24 it has been revised upward to 6.7% from 5.9%.

Dipti Deshpande, Principal Economist, Crisil, said the growth in April was supported by strong domestic demands as evident from auto sales, retail credit, electricity demand and others despite headwinds from the West Asia conflict.

On the outlook, Deshpande said, “industrial production could remain subdued in the months ahead due to weaker global demand and supply chain disruptions.”

Within manufacturing, 17 out of 23 industry groups recorded a positive growth in April 2026, with top three being manufacture of motor vehicles, trailers and semi-trailers (12.7%), manufacture of electrical equipment (19.2%) and manufacture of machinery and equipment (12.9%).

As per use-based classification, capital goods witnessed significant growth of 16.0%, followed by intermediate goods (7.7%), infrastructure/ construction goods (7.1%), consumer durables (4.3%), consumer non-durables (2.8%) and primary goods (0.8%) in April 2026.

The high growth of intermediate goods, construction goods and consumer durables are expected to support the economic activity and GDP growth, going forward, said Assocham President Nirmal Kumar Minda.

“Government’s continued capex is likely to keep capital goods and infrastructure/construction goods growth momentum in FY27 as well, while electricity generation is expected to further accelerate in May 2026 due to increased demand amidst high summer temperatures,” said Megha Arora, Director, India Ratings and Research.