India’s industrial activity recorded a year-on-year growth of 4.1% in March 2026 (provisional), as measured by the Index of Industrial Production (IIP). The expansion was primarily supported by sustained performance in the manufacturing sector (4.3%) and mining (5.5%), while electricity generation registered modest growth of 0.8%.
The overall IIP index rose to 173.2 in March 2026, compared to 166.3 in March 2025, reflecting continued industrial momentum despite a slight moderation from February’s 5.2% growth.
“The March 2026 IIP data reflects a broad-based industrial expansion, led by manufacturing and capital goods, which signals strengthening investment demand and capacity creation in the economy said Mr. Rajeev Juneja, President, PHDCCI.”
Manufacturing remained the principal growth driver, with 14 out of 23 industry groups showing positive expansion. Key contributors included basic metals (8.6%), motor vehicles (18.1%), and machinery and equipment (11.2%). This results in the diffusion index of 61 which indicates that more than half of manufacturing sectors are growing suggesting a moderately broad-based expansion, rather than growth concentrated in a few sectors he added.
Capital goods recorded strong growth of 14.6%, indicating improving investment activity, while infrastructure and construction goods grew by 6.7%. Consumer segments showed moderate expansion, with consumer durables at 5.3% and non-durables at 1.1%. The growth in consumer durables reflects a mix of cyclical recovery in consumption and financial year-end purchases.
“The strong performance in sectors such as automobiles, machinery, and basic metals highlights improving industrial competitiveness, though subdued electricity growth suggests uneven momentum across segments said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.”
