Industry leaders commended the steady growth of India’s Index of Industrial Production (IIP) for April, despite facing global headwinds and escalating input costs amidst the West Asia crisis. Nirmal Kumar Minda, President of Assocham, highlighted the significant 16% growth in capital goods, signaling increased investment and strong demand in the country. Moreover, the growth of intermediate goods at 7.7%, infrastructure/construction goods at 7.1%, and consumer durables at 4.3% is expected to bolster economic activity and GDP growth in the future, according to Minda.
The IIP, based on quick estimates with a 2022-23 base year, saw a growth of 4.9% in April 2026 compared to April 2025, primarily driven by a robust 6.2% growth in the manufacturing sector. Rajeev Juneja, President of PHDCCI, emphasized that India’s industrial sector has evolved to become more diversified and technology-oriented. The revised IIP figures offer a more current reflection of production patterns, enhancing the quality of industrial assessment across various sectors.
The new methodology broadens sectoral coverage by including Gas Supply and Water Supply, Sewerage & Waste Management activities, while also introducing granularity in mining and electricity generation segments. With a focus on 463 item groups aligned with the economy’s structure in 2022-23, the updated framework underscores the manufacturing sector’s role as the primary growth driver. Noteworthy expansions in motor vehicles, electrical equipment, machinery, and transport equipment, along with growth in infrastructure and intermediate goods production, indicate sustained momentum in the industrial sector.
