Industrial output grows 4.1% in March, led by manufacturing and mining

India’s industrial production grew by 4.1% in March 2026 compared to the same month a year earlier, supported by expansion in manufacturing and mining sectors, according to official data released by the Ministry of Statistics.

The growth, measured by the Index of Industrial Production (IIP), was lower than February’s revised 5.2%, mainly due to subdued performance in electricity generation.

Manufacturing drives growth

Manufacturing, which carries the largest weight in the IIP, recorded a 4.3% increase in March. The sector, which contributes significantly to employment generation, continued to anchor overall industrial activity.

Among the 23 industry groups within manufacturing, 14 recorded positive growth during the month. Key contributors included basic metals, which grew by 8.6%, motor vehicles with a sharp 18.1% rise, and machinery and equipment, including tractors, which expanded by 11.2%.

Mining up, electricity lags

The mining sector registered a growth of 5.5% during the month, indicating steady extraction activity. However, electricity generation grew by just 0.5%, emerging as a drag on the overall industrial output.

Capital goods signal investment momentum

Data classified by use showed that capital goods output surged by 14.6% in March, pointing to increased investment activity in the economy. Economists often view this segment as a key indicator of future growth, as it reflects capacity expansion by industries.

Consumer durables production also recorded a 5.3% increase, indicating sustained demand for items such as electronics and household appliances amid improving income levels.

Infrastructure sector remains strong

The infrastructure and construction goods segment expanded by 6.7%, driven by ongoing public investment in highways, ports and railways. The sector’s growth is seen as supportive of job creation and broader economic activity.