Prelims: Current events of national and international importance | Economy
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Industrial output, as measured by the Index of Industrial Production, grew 4.9% in April 2026, slower than 5.8% in the same period last year, according to the new IIP series released recently.
- Index of Industrial Production (IIP) - It is a key economic indicator that measures the short-term changes in the volume of physical production in Indian industries.
- Published by - The National Statistical Office (NSO) monthly under the Ministry of Statistics and Program Implementation (MoSPI).
- The IIP also incorporates data from 8 core industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity), which make up over 40% of the total IIP weight.
Architectural & Structural Changes in the New IIP Series Base Year Revision
- Base year Revision - Shifted from 2011–12 to 2022–23 (index baseline set at 100), aligning it with the newly updated Gross Value Added (GVA) and GDP series.
- Expanded Basket Size - The commodity basket has been expanded to 1,042 products (mapped to 463 item groups), up from 839 products in the older series.
- Broadened Sectoral Coverage- Expanded from 3 traditional sectors to 4 sectoral indices by incorporating a new composite division.
- New Divisions - Gas supply, water supply, sewerage & waste management activities alongside Mining, Manufacturing, and Electricity.
- Improved Data Granularity - Mining Sector - Sub-classified into fuel, metallic (including rare earth minerals), and non-metallic (including minor) minerals.
- Electricity Sector- Segmented explicitly into renewable and non-renewable energy sources.
- Data Continuity - A linking formula has been introduced to allow users to compare the old and new data series seamlessly.
- Sectoral Performance Analysis (April 2026 Data) Sectoral Division Weight / Share in Basket April 2026 Performance (YoY).
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Sectoral Division (YoY)
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Weight / Share in Basket
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April 2026 Performance
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Key Trends & Insights
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Manufacturing
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~75% (Dominant Share)
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Grew 6.2%
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Slower than April 2025 (6.3%). Out of 23, 6 industries contracted.
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Mining & Quarrying
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Varies by GVA weight
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Shrank >5%
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Drastic deceleration; dragged overall core industrial performance.
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Electricity
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Varies by GVA weight
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Slower Growth
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Decelerated compared to the previous fiscal year.
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Gas, Water & Waste
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New Addition
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Slower Growth
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Decelerated compared to the previous fiscal year.
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Key Manufacturing Sub-sector Drivers
- Top Growth - Electrical Equipment industry surged by 19.2%.
- Key Contractions - Wood products (-12.5%), Wearing Apparel (-7%), and Coke & Refined Petroleum Products (-0.4%).
Use-Based Classification Trends (April 2026)
- The IIP divides industries into 6 functional categories.
- Growth Quickened / Accelerated (Positive Economic Signals)
- Capital Goods - Rocketed to 16% growth, signaling strong long-term private sector investment and capacity expansion.
- Infrastructure / Construction Goods - Quickened to 7.1%, reflecting sustained government capital expenditure on infrastructure.
- Intermediate Goods - Grew faster at 7.7% (up by 0.19 percentage points YoY), indicating healthy supply-chain inputs.
- Growth Decelerated / Slowed (Consumptive Red Flags)
- Primary Goods - Slumped to 0.8% growth.
- Consumer Durables - Slowed down to 4.3% growth.
- Consumer Non-Durables - Slowed down to 2.8% growth, signaling muted rural and urban FMCG consumption demand.
Reference
The Hindu | Index of Industrial Production
