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

📌 Summary:

• India's industrial output grew 4.9% in April, up from 3.2% in March, per the NEW Index of Industrial Production (IIP) series released by MoSPI

• New series shifts base year to 2022-23 (from 2011-12), updates methodology and broadens coverage; it upgraded past growth to 6.7% (FY24), 6.4% (FY25), 4.3% (FY26) vs old 5.9%, 4%, 4.1% — mainly from higher manufacturing & electricity estimates

• April drivers: manufacturing +6.2% (weight cut to 76% from 78%); water supply/sewerage +6.6%; electricity & gas +4.9%; mining & quarrying CONTRACTED 5.1%

• New series now splits electricity by source: renewable generation rose 18% vs only 2.8% for non-renewable (but non-renewable has higher 7.8% weight vs 2.3% renewable)

• West Asia war impact: gas supply down 11.2% y-o-y; capital goods +16%, intermediate +7.7%, infrastructure goods +7.1%, consumer durables +4.3%

• Outlook caution: WPI inflation hit a 42-month high of 8.3% in April; Crisil's Dipti Deshpande sees FY27 GDP slowing to 6.6% (from 7.6% estimated for FY26) on energy-supply shock

🎯 UPSC Relevance: GS3 Economy — industrial growth measurement, manufacturing, base-year revision, impact of external (West Asia) shocks on output and inflation

📝 Prelims Facts:

• IIP is released by MoSPI (Ministry of Statistics & Programme Implementation); new base year = 2022-23
• Manufacturing weight in new IIP = 76%; use-based & sectoral classifications used
• WPI inflation reached a 42-month high of 8.3% in April

🔑 Key Term: Index of Industrial Production (IIP) — a composite indicator measuring short-term changes in the volume of production of industrial products relative to a base year.