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India's Industrial Output Grows 4.1% in March 2026, Driven by Manufacturing

India's Index of Industrial Production grew 4.1% year-on-year in March 2026, according to official data. The manufacturing sector expanded by 4.3%, while mining grew 5.5% and electricity recorded marginal growth. Capital goods led the use-based categories with 14.6% growth, followed by infrastructure/construction goods. The IIP index rose to 173.2 from 166.3 in March 2025.

Key Points: India's IIP Grows 4.1% in March 2026: Manufacturing & Mining Lead

  • Manufacturing and mining sectors drove 4.1% IIP growth
  • Capital goods grew 14.6%, infrastructure/construction goods up 6.7%
  • Motor vehicles and basic metals led manufacturing gains
  • IIP index rose to 173.2 from 166.3 year-on-year
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India's industrial output grows 4.1% in March 2026, driven by manufacturing and mining sectors

India's industrial output rose 4.1% in March 2026, driven by manufacturing and mining. Capital goods and infrastructure sectors showed strong growth.

"The IIP growth rate for March stood at 4.1 per cent, compared to 5.2 per cent in February 2026 - Ministry of Statistics & Programme Implementation"

New Delhi, April 28

India's Index of Industrial Production recorded a 4.1 per cent year-on-year growth in March 2026, supported by expansion in the manufacturing and mining sectors, according to official data released by the Ministry of Statistics & Programme Implementation on Tuesday.

The IIP growth rate for March stood at 4.1 per cent, compared to 5.2 per cent in February 2026 (Quick Estimate), indicating a moderation in industrial activity during the month.

Sector-wise, the mining sector grew by 5.5 per cent, while manufacturing expanded by 4.3 per cent. The electricity sector recorded a marginal growth of 0.8 per cent during the period.

The overall IIP index stood at 173.2 in March 2026, up from 166.3 in March 2025. The indices for mining, manufacturing and electricity sectors were recorded at 166.8, 169.4 and 221.3 respectively.

Within the manufacturing sector, 14 out of 23 industry groups at the two-digit National Industrial Classification (NIC) level registered positive growth. The top contributors included manufacture of basic metals, which grew by 8.6 per cent; manufacture of motor vehicles, trailers and semi-trailers at 18.1 per cent; and manufacture of machinery and equipment n.e.c., which expanded by 11.2 per cent.

In use-based classification, infrastructure and construction goods, capital goods and primary goods emerged as the top contributors to IIP growth during March 2026.

The indices for primary goods, capital goods, intermediate goods and infrastructure/construction goods stood at 173.3, 156.2, 181.4 and 229.0 respectively. Consumer durables and consumer non-durables were recorded at 146.2 and 150.6 respectively.

Growth rates across categories showed capital goods registering the highest expansion at 14.6 per cent, followed by infrastructure/construction goods at 6.7 per cent and consumer durables at 5.3 per cent. Intermediate goods grew by 3.3 per cent, while primary goods and consumer non-durables recorded modest growth of 2.2 per cent and 1.1 per cent respectively.

The Quick Estimates for March 2026 were compiled at a weighted response rate of 88.50 per cent, while the final revision for February 2026 was based on a response rate of 91.86 per cent.

The next release of the Index of Industrial Production for April 2026 is scheduled for June 1, 2026.

- ANI

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Reader Comments

P
Priya S
Good to see capital goods growing at 14.6% - that's a strong sign for future industrial capacity. But consumer non-durables at just 1.1% shows rural demand is still weak. More focus needed on employment generation and rural income support.
V
Vikram M
4.1% is okay but not great when we need 8-9% for employment creation. Auto sector growing 18% is impressive - people are still spending on vehicles. But overall, the slowdown from 5.2% in Feb to 4.1% in March needs analysis. At least mining and manufacturing are holding up.
S
Siddharth J
Naah, these numbers don't match ground reality. I know small manufacturers who are struggling with input costs and demand. Government cherry-picks sectors that look good. Basic metals and auto may be doing well but that's not the whole picture.
K
Kavya N
Atleast IIP is growing and above 170 mark now. Infrastructure/construction goods at 6.7% is good - shows government infra push is working. But why is electricity generation only 0.8%? We should be worried about power shortages in summer. Hope renewable energy capacity improves.
A
Ananya R
Promising numbers overall. Manufacturing at 4.3% and mining at 5.5% are both positive. But I wonder if this is inflation-adjusted growth? With input costs rising, real output may be lower. Still, any growth is better than contraction. Let's see if this sustains into Q1 of next fiscal.

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