India's factory output grows 4.9% in April, first IIP data under revised series

India's industrial output rose 4.9% year-on-year in April, primarily driven by a strong performance of the manufacturing sector, according to the first official release of the revised Index of Industrial Production (IIP) series with 2022-23 as the base year.

The Index of Industrial Production (IIP) stood at 118.9 in April, compared with 113.1 a year earlier, data released by the Ministry of Statistics on Monday showed.

Manufacturing, which accounts for the largest share of the index, grew 6.2% in April from a year earlier. Electricity and gas supply output rose 4.9%, while water supply, sewerage and waste management expanded 6.6%.

Mining and quarrying output, however, contracted 5.1%.

Within manufacturing, the strongest contributors were the manufacture of motor vehicles, trailers and semi-trailers, which grew 12.7%; electrical equipment, up 19.2%; and machinery and equipment, which increased 12.9%.

On a use-based classification, capital goods output surged 16.0% year-on-year, indicating strong investment activity, while intermediate goods grew 7.7% and infrastructure and construction goods rose 7.1%.

Consumer durables production increased 4.3%, while consumer non-durables output rose 2.8%. Primary goods output recorded a modest 0.8% increase.

The government has revised the base year for the IIP from 2011-12 to 2022-23 to better reflect the current structure of India's industrial sector.

Rajeev Sharan, Head of Research, Brickwork Ratings, said April's data should be read as an early sign that industrial growth is normalising at a moderate, investment led pace.

"From a credit standpoint, this capex heavy mix is mildly supportive for medium term corporate and sovereign profiles, assuming the trend holds and is backed by earnings strength," he added.

Vikas Gupta, CEO & Strategist, OmniScience Capital, said April numbers show that growth continues for the manufacturing sector as well as electricity showing healthy economic fundamentals.

"Specifically capital goods and infrastructure sectors have even higher growth rates... Overall, looks like a good start to FY 2027," Gupta added.

The next set of industrial production data, for May 2026, is scheduled to be released on June 29.