India industrial growth eases to 4.1%

India’s industrial output rose 4.1% in March 2026, slowing from 5.2% in February as electricity generation nearly stalled. (mospi.gov.in) The Ministry of Statistics and Programme Implementation said mining output grew 5.5% and manufacturing grew 4.3% in March, while electricity output rose just 0.8%. (mospi.gov.in) The overall Index of Industrial Production stood at 173.2 in March, up from 166.3 a year earlier. February’s growth rate was revised to 5.1% from the earlier 5.2%. (mospi.gov.in) (business-standard.com) Inside manufacturing, 14 of 23 industry groups posted growth. The biggest lifts came from basic metals, motor vehicles and trailers, and machinery and equipment. (mospi.gov.in) The use-based breakdown showed a split economy. Capital goods, a proxy for investment demand, rose 14.6%, while consumer non-durables, a rough gauge of everyday household demand, rose only 1.1%. (mospi.gov.in) (news18.com) Infrastructure and construction goods grew 6.7% and consumer durables rose 5.3% in March, suggesting public works and discretionary purchases held up better than staples. (mospi.gov.in) (indianexpress.com) The March reading landed eight days after India’s eight core industries index fell 0.4%, its first contraction in five months. Coal output dropped 4.0%, crude oil 5.7%, fertilizer 24.6%, and electricity 0.5%. (pib.gov.in) Those eight core industries account for 40.27% of the industrial production index, so the March contraction had pointed to a softer factory reading. The 4.1% result still came in above some economists’ expectations. (pib.gov.in) (indianexpress.com) For the full 2025-26 fiscal year, industrial production grew 4.1%, barely above 4.0% in 2024-25. That leaves India closing the year with steady output growth, but without a late surge. (indianexpress.com) (economictimes.indiatimes.com) March was also the last industrial output release on the old 2011-12 base year. The statistics ministry said it will publish a revised Index of Industrial Production series with 2022-23 as the base on June 1. (indianexpress.com)