Indian Economy News

Index of Industrial Production (IIP) recorded a 4.1 % year-on-year growth in March 2026

India’s Index of Industrial Production (IIP) recorded a robust year-on-year growth of 4.1% in March 2026, reflecting sustained strength in the country’s industrial activity and manufacturing-led economic expansion. The overall IIP stood at 173.2 compared to 166.3 in March 2025, supported by healthy growth across key sectors including manufacturing (4.3%), mining (5.5%), and electricity (0.8%). The performance highlights continued industrial resilience, driven by rising domestic demand, infrastructure development, and improving capacity utilisation across industries.

Within manufacturing, 14 out of 23 industry groups reported growth, with major contributions coming from basic metals (8.6%), motor vehicles, trailers and semi-trailers (18.1%), and machinery and equipment (11.2%). Strong output in auto components, commercial vehicles, agricultural tractors, and steel products reflects expanding industrial demand and strengthening supply chains. On a use-based classification, capital goods registered an impressive 14.6% growth, indicating strong investment activity, while infrastructure and construction goods grew by 6.7%, reinforcing India’s ongoing focus on public infrastructure and industrial development. Consumer durables also rose by 5.3%, signalling healthy consumption trends. The sustained expansion in core industrial segments underlines India’s progress toward becoming a globally competitive manufacturing hub and supports the broader vision of accelerated economic growth under Make in India initiatives.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.