Industrial Production Rises 4.9% in April
2026
The Ministry of Statistics and Programme
Implementation (MoSPI) released the first all-India estimates of the Index of
Industrial Production (IIP) under the revised 2022-23 base year series. According
to these estimates, India's industrial production grew by 4.9% in April 2026.
Index of Industrial Production (IIP)
¨
The Index of Industrial
Production (IIP) is a key economic indicator that measures the performance of
the country's industrial sector. It reflects the changes in production within
the mining, manufacturing, and electricity sectors.
Key Highlights
¨
Industrial Growth:
India's industrial production grew by 4.9% year-on-year in April 2026. The
Quick Estimate of the IIP for April 2026 stood at 118.9, compared to 113.4 in
April 2025.
¨
Manufacturing Sector as
the Key Driver: The manufacturing sector, which holds the highest weightage
(76.06%) in the index, recorded a growth of 6.2% and emerged as the primary
driver of industrial expansion.
¨
Sector-wise Performance:
Electricity and gas supply recorded a growth of 4.9%, while water supply,
sewerage, and waste management expanded by 6.6%. The mining and quarrying
sector witnessed a contraction of 5.1% during the month.
¨
Manufacturing Sector
Performance: Out of 23 manufacturing industry groups, seventeen recorded
positive growth in April 2026. The strongest contributors were electrical
equipment (19.2%), machinery and equipment not elsewhere classified (12.9%),
and motor vehicles, trailers, and semi-trailers (12.7%).
¨
Other Fast-Growing
Manufacturing Industries: Growth was recorded in other transport equipment
(18.9%), textiles (15.6%), paper and paper products (13.8%), fabricated metal
products (11.7%), and basic metals (5.8%).
¨
Use-based Classification:
Capital goods recorded the highest growth at 16.0%, while intermediate goods
grew by 7.7% and infrastructure/construction goods by 7.1%.
¨
Consumer durables and
consumer non-durables recorded growth of 4.3% and 2.8%, respectively.
¨ Key Contributors to
Industrial Growth: Intermediate goods, capital goods, and
infrastructure/construction goods were the major contributors to overall
industrial growth during April 2026.
¨
Revised Historical Growth
Rates: According to the revised IIP series, the industrial growth rate stood at
6.7% in 2023-24, 6.4% in 2024-25, and 4.3% in 2025-26; these figures are higher
than the corresponding estimates from the previous series for most of these
years.
Index of Industrial Production (IIP)
¨
The Index of Industrial
Production (IIP) measures changes in the volume of industrial production
relative to a base year.
¨
It is compiled and
released monthly by the National Statistical Office (NSO) under the Ministry of
Statistics and Programme Implementation (MoSPI).
¨
It serves as a key
indicator of the industrial sector's performance and overall economic activity.
Revision of Base Year (from 2011-12 to
2022-23):
¨
The Ministry of
Statistics and Programme Implementation (MoSPI) has revised the IIP base year
from 2011-12 to 2022-23, based on the recommendations of the ‘Technical
Advisory Committee (TAC) for Revision of Base Year of All-India IIP’. The
objective of this revision is to incorporate structural changes in the economy,
technological advancements, and the emergence of new industries and products.
The financial year 2022-23 was selected as the base year because it aligns with
the base years of other macroeconomic indicators, such as Gross Domestic
Product (GDP) and Wholesale Price Index (WPI). This marks the 10th revision of
the IIP base year since the inception of the first series with a 1937 base
year.
¨
Expanded Sectoral
Coverage: The new series retains the sectors of Mining and Quarrying,
Manufacturing, and Electricity, while also including Gas Supply and Water Supply,
Sewerage, and Waste Management activities.
¨
Expansion of Mining
Sector: In addition to major minerals, the mining sector now encompasses minor
minerals and rare earth minerals.
¨
Separate Indices:
Distinct indices are released for renewable and non-renewable electricity
generation, fuel minerals, metallic minerals, non-metallic minerals, gas
supply, and water supply & waste management activities.
¨
Expanded Product Basket:
The new IIP series includes 1,042 products across 463 item groups, compared to
839 products across 407 item groups in the previous series. A total of 120 new
item groups have been added, including CCTV cameras, aircraft and spacecraft
parts, non-woven textile products, stents, and vaccines. Additionally, 64
obsolete item groups—such as kerosene, fluorescent tubes, CFLs, printing
machinery, and sewing machines—have been removed.
¨
Reflection of Current
Trends: This revised basket more accurately and effectively reflects current
industrial production patterns.
¨ Revised Weighting Structure: Sector-wise weights are based on the sectors' share in Gross Value Added (GVA) for the year 2022-23. The manufacturing sector holds the highest weight at 76.06%. The weight for manufacturing is based on data from the Annual Survey of Industries (ASI) 2022-23, while weights for electricity and mining are based on revenue share and mineral-wise GVA contribution.
¨ Methodological Improvements: The revised series adopts the National Industrial Classification (NIC) 2025, and the number of value-based item groups has been increased from 109 to 234. It includes provisions for replacing non-operational (closed) factories and handling missing data more effectively. The index is compiled using the continuous Laspeyres fixed-base method.
