PR No – 136
1st June
New Delhi
India’s New IIP Series Reflects Structural realities of Industrial Economy: PHDCCI
The Index of Industrial Production (quick estimates with 2022-23 base year) recorded a growth of 4.9% in April 2026 compared with April 2025, led primarily by robust manufacturing sector growth of 6.2%. Capital goods output expanded sharply by 16%, indicating continued investment activity and strengthening industrial capacity creation.
“India’s industrial sector, over the years, has become more diversified, and technology-oriented. The revised IIP numbers provide a more current reflection of production patterns and will improve the quality of industrial assessment across sectors said Mr. Rajeev Juneja, President, PHDCCI.”
The new framework broadens sectoral coverage by incorporating Gas Supply and Water Supply, Sewerage & Waste Management activities while at the same time introducing granularity in mining and electricity generation segments. The updated methodology includes item basket comprising of 463 item groups and weights aligned with the structure of the economy in 2022–23, he added.
The manufacturing sector continued to remain the primary growth driver, with strong expansion in motor vehicles, electrical equipment, machinery and transport equipment. Growth in infrastructure and intermediate goods production indicates sustained momentum.
The inclusion of newer products such as CCTV cameras, aircraft parts, stents and non-woven textile articles improves the coverage of the index to current industrial ground realities, he said. The inclusion of renewable energy generation, rare earth minerals and modern manufacturing products aligns the index more closely with global statistical practices.
This further highlights sustained growth in manufacturing, infrastructure goods and capital goods which are important for supporting employment generation, export competitiveness and long-term economic growth.
The respective growth rates of IIP as per Use-Based Classification in April 2026 over April 2025 are 0.8 percent in Primary Goods, 16.0 percent in Capital Goods, 7.7 percent in Intermediate Goods, 7.1 percent in Infrastructure/ Construction Goods, 4.3 percent in Consumer durables and 2.8 percent in Consumer non-durables.
“Strong performance of capital goods, engineering products and manufacturing segments indicates continued industrial activity expansion and the broader sectoral coverage will enhance the usefulness of industrial data for investors and policy analysis says Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.