India's factories and industrial units produced more in April 2026 than they did a year ago by a healthy margin. The country's Index of Industrial Production, or IIP, grew 4.9 per cent in April 2026 compared to April 2025. IIP is the Centre's main measure of how much factories, mines, and power plants are collectively producing.
The Ministry of Statistics and Programme Implementation (MoSPI) also revised the base year of the IIP from 2011–12 to 2022–23, and the latest data set was the first to use it.
But what does this mean? A "base year" is the reference point against which all growth is measured. The old base was nearly 15 years out of date. The revamped index now tracks 1,042 products across 463 item groups, up from 839 products and 407 item groups earlier, and for the first time formally counts Gas Supply, Water Supply, Sewerage, and Waste Management as part of India's industrial activity.
The star performer in April was manufacturing, which grew 6.2 per cent and makes up about 76 per cent of the entire index. Within manufacturing, 17 of 23 industry sub-groups posted positive numbers.
The biggest gainers were Electrical Equipment (+19.2 per cent), Machinery and Equipment (+12.9 per cent), and Motor Vehicles (+12.7 per cent).
The auto sector's strong showing was backed by rising sales of passenger cars, auto components, and wheel rims, reflecting both robust domestic demand and India's growing role in global auto supply chains. Electricity and Gas Supply expanded 4.9 per cent, while the newly included Water Supply and Waste Management segment grew 6.6 per cent.
The only weak spot was Mining and Quarrying, which contracted 5.1 per cent year-on-year. Fuel minerals, covering coal and crude petroleum extraction, fell 5.7 per cent, likely reflecting seasonal patterns and base effects rather than any structural slowdown.
Capital Goods (machines, equipment, and tools that factories use to produce more goods) surged 16 per cent, the fastest-growing category of all. This is a strong signal that businesses are investing in expanding their capacity, a forward-looking indicator for industrial growth.
Infrastructure and Construction Goods grew 7.1 per cent, and Intermediate Goods (the raw materials and components that feed into finished products) expanded 7.7 per cent.
Consumer Durables (refrigerators, televisions, and the like) and Consumer Non-Durables (food, medicines, everyday items) grew at 4.3 per cent and 2.8 per cent, respectively. This meant that household consumption is still warming up and needs more push. The next IIP data release using the new base year for May 2026 is scheduled for June 29, 2026.
