New IIP series: April industrial growth rises to 4.9% from 3.2% in March

📌 Summary:

• MoSPI released a new IIP (Index of Industrial Production) series with base year 2022-23 (replacing the old 2011-12 base year), updated methodologies, and broader coverage
• Headline number: India's industrial output grew 4.9% in April 2026, up from 3.2% in March 2026
• Past growth rates revised upward: IIP growth FY24 = 6.7% (old: 5.9%), FY25 = 6.4% (old: 4.0%), FY26 = 4.3% (old: 4.1%); revisions driven mainly by upward changes in manufacturing and electricity
• Sectoral weights in new series: Manufacturing 76% (down from 78%); electricity sub-split into renewable (weight 2.3%) and non-renewable (weight 7.8%)
• April 2026 sector performance: Manufacturing +6.2%; Water supply, sewerage & waste management +6.6%; Electricity & gas supply +4.9%; Mining & quarrying -5.1%
• Renewable vs non-renewable electricity: Renewable generation +18% vs non-renewable +2.8% — strong RE growth but lower weight in IIP
• West Asia war impact: Gas supply -11.2% (April 2026 vs April 2025); manufacturing of chemicals just +0.4% after -4.9% fall in March, indicating gradual recovery from gas/petrochemicals rationing peak
• Use-based classification (April): Capital goods +16%; intermediate goods +7.7%; infrastructure goods +7.1%; consumer durables +4.3%; non-durables +2.8%; primary goods +0.8%
• Outlook: Barclays sees gradual supply recovery; Crisil flags rising costs as the bigger risk — wholesale inflation at 42-month high of 8.3% in April; Crisil's GDP forecast for FY27 = 6.6% (down from MoSPI's 7.6% for FY26)
• GDP data for Jan-Mar 2026 and FY26 provisional estimate to be released Friday

🎯 UPSC Relevance: GS3 Economy (industrial policy, manufacturing growth, statistical methodology); GS3 Disaster/Geo-economy (impact of West Asia conflict on industrial supply chains).

📝 Prelims Facts:

• IIP = Index of Industrial Production, released by MoSPI (Ministry of Statistics and Programme Implementation)
• New base year: 2022-23 (replacing 2011-12)
• Manufacturing weight in new IIP: 76% (vs 78% earlier)
• IIP April 2026: +4.9% YoY
• WPI April 2026: 8.3% (42-month high)
• Crisil FY27 GDP forecast: 6.6%; MoSPI FY26 estimate: 7.6%
• Eight Core Industries (separate index) not to be confused with IIP — IIP covers broader manufacturing, mining and electricity

🔑 Key Term: Use-based classification of IIP — categorises output into Primary, Capital, Intermediate, Infrastructure/Construction, Consumer Durable and Consumer Non-Durable goods — a key prelims classification used to read demand vs supply momentum.