Factory output growth slows to 4.9% in April as India updates IIP base year

IIP Growth Data: India's industrial output expanded 4.9 per cent in April 2026, compared with the Zee Business estimate of 3.9 per cent, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. The release marks the first reading under the revised Index of Industrial Production (IIP) series, which now uses 2022-23 as the base year.

The new series has been introduced to better capture changes in the structure of the economy through updated sectoral weights, an expanded product basket and wider industrial coverage.

The IIP stood at 118.9 in April 2026, compared with 113.1 in the corresponding month a year ago.

Growth rate lower than last year under revised series

While industrial output expanded 4.9 per cent in April 2026, the growth rate was lower than the 5.7 per cent recorded in April 2025.

Manufacturing growth moderated marginally to 6.2 per cent from 6.4 per cent a year earlier. The sector, however, continued to remain the biggest contributor to overall industrial activity due to its dominant weight in the index.

Mining and quarrying witnessed a sharper slowdown, contracting 5.1 per cent in April compared with growth of 0.6 per cent in the corresponding month last year.

Electricity and gas supply registered growth of 4.9 per cent, while water supply, sewerage and waste management activities expanded 6.6 per cent.

Auto, electrical equipment growth trend

Among the major contributors, manufacture of electrical equipment recorded the highest growth at 19.2 per cent.

The manufacture of other transport equipment expanded 18.9 per cent, while textiles grew 15.6 per cent.

Manufacture of motor vehicles, trailers and semi-trailers increased 12.7 per cent, while machinery and equipment grew 12.9 per cent.

Other sectors, including fabricated metal products and basic metals, also reported healthy growth during the month.

Capital goods growth

On a use-based classification, capital goods emerged as the fastest-growing segment, registering growth of 16 per cent in April.

Intermediate goods grew 7.7 per cent, while infrastructure and construction goods expanded 7.1 per cent.

Consumer durables recorded growth of 4.3 per cent and consumer non-durables increased 2.8 per cent.

The data suggests continued momentum in investment-linked sectors and industrial activity.

Some sectors remain under pressure

Not all sectors participated in the growth trend.

Wood and products of wood contracted 12.5 per cent during the month.

Other segments that recorded declines included beverages, wearing apparel, printing and reproduction of recorded media, and furniture.

Output of coke and refined petroleum products was marginally lower compared with the year-ago period.

New IIP series broadens industrial coverage

The revised IIP series expands the scope of industrial measurement by incorporating gas supply, water supply, sewerage and waste management activities.

It also introduces separate indices for renewable and non-renewable electricity generation, as well as distinct classifications for fuel minerals, metallic minerals and non-metallic minerals.

MoSPI has also refreshed the item basket used for industrial production measurement.

New-age products such as CCTV cameras, aircraft components, coronary stents and vaccines have been added to the basket, while products considered less relevant in the current industrial landscape, including kerosene, CFL bulbs and certain tyre tubes, have been removed.

Revised series aimed at improving economic measurement

The government said the updated series is designed to provide a more representative picture of industrial activity in the country and strengthen the quality of data used in national income estimation.

The revised IIP will also serve as an important input for calculating Gross Domestic Product (GDP) and assessing trends in industrial performance.

The next IIP data release, covering May 2026, is scheduled for June 29.