India's industrial output demonstrated robust growth of 4.9% year-on-year in April 2026, marking the first data release under the new 2022-23 base year series. According to the National Statistics Office (NSO), this performance was driven by strong growth in manufacturing and electricity sectors, with the manufacturing sector recording a robust 6.2% expansion during the month. The electricity, gas supply and water supply segment registered 4.9% growth, while sewerage and waste management witnessed 6.6% year-on-year growth. However, there was a 5.1% contraction in mining and quarrying output during April.
The new Industrial Index of Production (IIP) series demonstrates stronger growth in industrial output compared to the older 2011-12 series. According to reports from Business Standard, general IIP growth rose to 6.7% in 2023-24 under the 2022-23 base, compared with 5.9% in the old series. The new series continues to outperform with 6.4% growth in 2024-25 versus 4% in the older series. By 2025-26, the gap narrows significantly with the new series at 4.3% and the old series at 4.1%. The latest April data reinforces this trend, with the new series consistently showing higher growth rates across all financial years.
The new IIP series particularly benefits manufacturing sectors and overall industrial output, as reported by Business Standard. Within manufacturing, 17 out of 23 industry groups recorded positive growth in April 2026, with the top three performers 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%). The revised weights reflect a changing industrial structure with higher importance assigned to food products, wearing apparel, rubber and plastics, automobiles, and pharmaceutical products, while basic metals and refined petroleum products have lost weight under the 2022-23 series relative to the older one. As per Assocham President Nirmal Kumar Minda, the high growth of intermediate goods, construction goods and consumer durables are expected to support economic activity and GDP growth going forward.
The new IIP series incorporates 2022-23 base year calculations, which results in higher growth rates compared to the older 2011-12 series. As reported by Business Standard, the revised weights point to a changing industrial structure with higher importance in terms of weights now assigned to specific sectors. The data comparison shows that by 2025-26, the gap narrows between the new and old series, indicating a more convergent measurement approach over time. Under the new series, IIP growth for the past three financial years has been revised upwards, with the latest April data reinforcing this trend of upward revisions across all financial years.
Industry experts remain cautiously optimistic about the industrial growth trajectory despite some challenges. Dipti Deshpande, Principal Economist at Crisil, noted that the April growth was supported by strong domestic demands as evident from auto sales, retail credit, electricity demand and others despite headwinds from the West Asia conflict. However, she cautioned that industrial production could remain subdued in the months ahead due to weaker global demand and supply chain disruptions. Megha Arora, Director at India Ratings and Research, expects government's continued capex to keep capital goods and infrastructure/construction goods growth momentum in FY27, while electricity generation is expected to further accelerate in May 2026 due to increased demand amidst high summer temperatures.
