IIP Grows 4.1% in March 2026; Manufacturing, Mining and Electricity All Register Positive Growth

📌 Summary:

• Index of Industrial Production (IIP) grew 4.1% year-on-year in March 2026, compared to March 2025
• IIP measures industrial output across three broad sectors: Manufacturing (77.6% weight), Mining (14.4%), Electricity (7.9%)
• Manufacturing sector grew 3.8%; Mining sector grew 5.2%; Electricity generation grew 4.6% in March 2026
• Capital goods production (proxy for business investment activity) registered positive growth — a positive signal for private capex revival
• Consumer durables and non-durables both showed positive growth, reflecting sustained domestic demand
• IIP is released by the Ministry of Statistics and Programme Implementation (MoSPI) with approximately 6 weeks' lag
• Full-year FY2025-26 average IIP growth estimated at approximately 4.2%, broadly in line with FY25
• IIP data is monitored by RBI as part of its assessment of economic activity for monetary policy decisions
• UPSC angle: IIP is a leading macroeconomic indicator; trend analysis is critical for GS3 questions on economic growth and industrial policy