On the consumer front, 4.3% more durable goods were produced in April, while growth in non-durables was 2.8%.India’s industrial output grew by 4.9% in April, higher than the 3.2% growth recorded in March, according to the new Index of Industrial Production (IIP) data series released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.The new IIP series, which has 2022-23 as the base year as against 2011-12 in the old one and updates various methodologies used in the compilation of the index and broadens the coverage of the economic indicator, also upgraded the industrial growth rate for the last three years. IIP growth in 2023-24, 2024-25, and 2025-26 is now estimated at 6.7%, 6.4%, and 4.3%, respectively. In the old 2011-12 series, the respective industrial growth rates were 5.9%, 4%, and 4.1%. The higher industrial growth in the past three years as per the new series is primarily due to upward revisions in manufacturing and electricity growth.In April, industrial growth was driven by the manufacturing sector, whose output rose 6.2% from the same month last year. The manufacturing sector has a 76% weight in the new IIP series, up from 78% in the 2011-12 series.Meanwhile, output of ‘water supply, sewerage & waste management’ and ‘electricity & gas supply’ rose 6.6% and 4.9%, respectively, in April. However, ‘mining and quarrying’ output contracted 5.1%.Within electricity and gas supply, MoSPI now provides a break-up of electricity generated through renewable and non-renewable sources. In April, electricity generation from renewable sources was 18% higher compared to only 2.8% growth for electricity from non-renewable sources. However, electricity from non-renewable sources has a much higher weight of 7.8% in the IIP compared to 2.3% for renewable sources.The impact of the war in West Asia was seemingly seen in the supply of gas, which was down 11.2% compared to April 2025.According to Barclays economists Aastha Gudwani and Amruta Ghare, the recovery in ‘manufacture of chemicals’ – whose output rose 0.4% in April following a 4.9% fall in March – “corroborates our view that peak shortages for industrial inputs (from gas and petrochemicals rationing) seen in March saw gradual improvement in supply in April and May”. And while the manufacture of coke and refined petroleum products was 0.5% lower in April compared to last year, “the sector growth was generally subdued even prior to the conflict”.Story continues below this ad“As such, we would not entirely attribute the Middle-East-related disruptions to output weakness here,” the economists added.In terms of use-based classification of goods produced, output of primary goods was 0.8% higher in April, while that of capital goods rose 16% and intermediate goods 7.7%. Infrastructure goods’ production was 7.1% higher.On the consumer front, 4.3% more durable goods were produced in April, while growth in non-durables was 2.8%.Going forward, economists expect industrial growth to be subdued on account of weaker global demand and supply chain disruptions.Story continues below this ad“The larger risk, though, is rising costs,” said Dipti Deshpande, Principal Economist at Crisil, referring to the energy supply shock caused by the conflict in West Asia. “Cost pressures are already visible, with wholesale inflation jumping to a 42-month high of 8.3% in April, along with consecutive increases in retail prices of diesel and petrol.”Deshpande expects GDP growth in 2026-27 to decline to 6.6%, down from the 7.6% estimated by MoSPI for 2025-26. The statistics ministry will, on Friday, release GDP data for January-March and the provisional estimate for 2025-26.Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More