The Ministry of Statistics & Programme Implementation in its latest report has showed that Index of Industrial Production (IIP) recorded a 4.1% (Quick Estimate) year-on-year growth in March 2026, which is lower than 5.1% growth in the month of February 2026. The industrial growth was 3.9% in March 2025. The slowdown in the growth rate can be attributed to a sharp moderation in electricity generation and softer manufacturing momentum, which offset the strength in capital goods segment. The index value for IIP stood at 173.2 in March 2026 against 158.8 in February 2026, and 166.3 in March 2025. Besides, the country's industrial production inched up to 4.1% during the April-March period of FY26 compared to 4.0% in the corresponding period of last year. Meanwhile, growth rate for February 2026 was revised downward to 5.1% from earlier estimate of 5.2% released in previous month.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of March 2026 stood at 166.8, 169.4 and 221.3 respectively. The growth rate in mining sector came in at 5.5% for the month of March 2026, higher as compared to 3.1% in February 2026, 1.2% in March 2025. The growth rate in manufacturing sector stood at 4.3% for March 2026, lower as compared to 5.9% in February 2026, while it was higher compared to 4.0% in March 2025. Also, growth rate in electricity sector stood at 0.8% for March 2026, sharply lower as compared to 2.3% in February 2026 and 7.5% in March 2025.

Within the manufacturing sector, 14 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in March 2026 over March 2025. The top three positive contributors for the month of March 2026 are – ‘Manufacture of basic metals’ (8.6%), ‘Manufacture of motor vehicles, trailers and semi-trailers’ (18.1%) and ‘Manufacture of machinery and equipment n.e.c.’ (11.2%).

As per the use base classification, the indices stood at 173.3 for Primary Goods, 156.2 for Capital Goods, 181.4 for Intermediate Goods and 229.0 for Infrastructure/ Construction Goods for the month of March 2026. Further, the indices for Consumer durables and Consumer non-durables stood at 146.2 and 150.6 respectively.

The growth in Primary goods segment stood at 2.2% in March 2026 higher comparted to 1.8% in February 2026, while it was lower compared to 3.9% in March 2025. The growth in Capital goods segment jumped to 14.6% in March 2026 over 12.4% in February 2026, and 3.6% in March 2025. The growth in Intermediate goods segment slipped to 3.3% in March 2026 compared to 7.2% in February 2026, and 3.8% in March 2025. 

The growth in Infrastructure/ Construction Goods segment fell to 6.7% in March 2026 compared to 11.1% in February 2026, and 9.9% in March 2025. Also, the growth in Consumer durables segment declined to 5.3% in March 2026 compared to 7.1% in February 2026, and 6.9% in March 2025. However, Consumer non-durables segment growth came at 1.1% in March 2026 from (-) 0.5% in February 2026, and (-) 4.0% in March 2025.