India’s Industrial Output Rises 4.9% in April as Manufacturing Growth Accelerates Under New IIP Series

The latest data released by the Ministry of Statistics and Programme Implementation marks the first industrial output reading under the revised IIP series with 2022-23 as the base year. The updated methodology is designed to better reflect India’s evolving industrial landscape and provide a more accurate picture of economic activity.

Manufacturing emerged as the key growth driver during the month, registering a robust 6.2 percent year-on-year expansion. Since manufacturing carries the highest weight within the IIP basket, its strong performance significantly contributed to overall industrial growth.

The data also revealed encouraging trends in investment-related sectors. Capital goods production, often considered an indicator of future industrial investment and capacity creation, surged 16 percent during April. This sharp increase points to continued confidence among businesses and sustained investment activity across industries.

Infrastructure and construction goods output also witnessed healthy growth, reflecting ongoing government spending on infrastructure development and rising construction activity across the country. The performance is particularly significant for sectors such as cement, steel, engineering and construction, which continue to benefit from large-scale public and private investments.

However, not all sectors reported positive growth. Mining and quarrying activity declined by 5.1 percent during the month, indicating challenges in resource extraction and supply. Meanwhile, electricity and gas supply recorded a growth of 4.9 percent, supporting industrial operations and economic activity.

The revised IIP framework introduces broader coverage by including sectors such as gas supply, water supply, sewerage and waste management. It also expands the number of product groups covered under the index, bringing India’s industrial statistics closer to international standards.

With manufacturing remaining strong and capital goods output showing impressive growth, the latest figures indicate that India’s industrial sector continues to play a crucial role in supporting economic expansion, infrastructure development and employment generation.