Indian Industrial Production Index Sees 4.9% Increase in April

India's Factory Output Sees 4.9 Percent Growth in April 2026

India's factory output, measured by the Index of Industrial Production (IIP), grew 4.9 percent in April 2026, up from 3.2 percent in the previous month, according to data released by the statistics ministry on June 1. This growth was largely driven by manufacturing activity.

The IIP growth rate in April 2026 was higher than the 3.2 percent growth recorded in the previous month. In contrast, the IIP growth rate in April 2025 was 5.7 percent. The statistics ministry has released the first set of data using the new base year 2022-23.

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Manufacturing output grew 6.2 percent year-on-year in April, while output of mining and quarrying dropped by 5.1 percent. Electricity and gas supplies' output rose by 4.9 percent on year. Within the manufacturing sector, 17 out of 23 industry groups at the NIC 2-digit level recorded a positive growth in April 2026 over April 2025.

The top three positive contributors for the month of April 2026 were the manufacture of motor vehicles, trailers, and semi-trailers (12.7%), the manufacture of electrical equipment (19.2%), and the manufacture of machinery and equipment (12.9%). Within the use-based category, consumer durables output grew 4.3 percent on year in April, and consumer non-durables output inched up by 2.8 percent.

Infrastructure and intermediate goods output rose by 7.1 percent and 7.7 percent, respectively, during April. Capital goods growth stood at 16 percent, while primary goods growth stood at a modest 0.8 percent during the month. Statistics Secretary Saurabh Garg noted that the April IIP data shows that domestic production did not get starkly affected due to the ongoing conflict in West Asia, which began at the end of February.

The new IIP series expanded the scope and coverage by including gas supply, water supply, sewerage, and waste management activities while retaining the existing sectors. The new series also provides greater granularity in data by providing separate indices for electricity generation from renewable and non-renewable sources. The new series contains 463 items, higher than the 407 items in the previous series, with a base year of 2011-12.

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