Growth was driven by manufacturing sector while the output of the mining sector contracted year-on-year in April.
Industrial production had risen 5.7% in April 2025, as per the new series, while it’s 3.2% under the old series.
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Growth in the automobile segment was driven by higher production of auto components, passenger cars and wheel rims. In electrical equipment, strong output was recorded in switchgear and circuit protection equipment, carbon-based electrical products, and transformers. The machinery segment benefited from increased production of firefighting equipment, cranes, and industrial engines.
Manufacturing, which accounts for about 13% of the Indian economy and has been among the sectors hardest hit by the crisis, grew 6.2% in April, while capital goods output rose 16% on-year in the first month of FY27. Within the manufacturing sector, 17 out of 23 industry groups at NIC 2 digit-level grew compared to last April.
The new IIP series replaces the 2011-12 series, and introduces significant changes in methodology and coverage with inclusion of industries such as rare earth minerals, gas supply and water supply.
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“We’ve filled the gaps in the previous IIP series, by including new items,” said Saurabh Garg, secretary, Ministry of Statistics and Programme Implementation (MoSPI).
As per the official data, consumer durables output grew 4.3% while consumer non-durables’ output inched rose 2.8%. Infrastructure and intermediate goods output was up 7.1% and 7.7%, respectively during April.
“Domestic demand held up, as evident from auto sales, retail credit, electricity demand and others despite headwinds from the West Asia conflict,” said Dipti Deshpande, principal economist at Crisil.
Megha Arora, director, India Ratings & Research said that notwithstanding higher crude prices and its passthrough to consumers from mid-May 2026, IIP growth may improve to 5.5% in May as base effect will help in maintaining the growth momentum.
“Government’s continued capex is likely to keep capital goods and infrastructure/construction goods growth momentum in FY27 as well, while electricity generation is expected to further accelerate in May 2026 due to increased demand amidst high summer temperatures,” Arora said.
On the impact of the West Asia crisis on the factory output, Garg said: “This is domestic production data which may not be directly affected (but) refined petroleum is sector where there is (an impact).”
Officials said the revised Wholesale Price Index with base FY23 has been used to deflate production data reported in value terms and an Output Producer Price Index (PPI) would be considered once it is introduced and its stability assessed.