NEW DELHI: India’s industrial sector demonstrated remarkable resilience as the Index of Industrial Production (IIP) recorded a steady growth of 4.9% in April 2026 compared to April 2025. Industry captains on Monday highly praised the performance, noting that the growth comes despite severe global headwinds and escalating input costs driven by the ongoing West Asia crisis.
The expansion was primarily spearheaded by a robust manufacturing sector, which clocked a growth rate of 6.2%.
Strong Capital Goods Performance Signal Investment Boom
Nirmal Kumar Minda, President of Assocham, highlighted that the growth of capital goods at a staggering 16% is exceptionally strong, reflecting a major uptick in core investments and strong aggregate demand across the country.
“High growth of intermediate goods at 7.7 per cent, infrastructure/construction goods at 7.1 per cent and consumer durables at 4.3 per cent are expected to support the economic activity and GDP growth, going forward,” Minda noted, adding that Assocham looks forward to sustained industrial momentum backed by proactive government handholding.
Modernized Framework Captures Current Industrial Realities
The latest release marks the implementation of quick estimates under a newly revised 2022–23 base year, which aligns weights directly with the current structure of the economy. The updated methodology includes a comprehensive item basket comprising 463 item groups.
Rajeev Juneja, President of PHDCCI, emphasized that India’s industrial landscape has become significantly more diversified and technology-oriented over the years.
The new architectural framework modernizes industrial assessment through structural expansions:
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Broadened Sectoral Coverage: Incorporates critical utility sectors like Gas Supply, Water Supply, Sewerage, and Waste Management activities.
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Enhanced Granularity: Introduces deeper tracking segments within mining and electricity generation.
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Contemporary Product Inclusion: Integrates newer, fast-evolving manufacturing products such as CCTV cameras, aircraft parts, medical stents, and non-woven textile articles.
The manufacturing sector continues to act as India’s primary economic engine, with intense expansion observed in motor vehicles, electrical equipment, machinery, and transport equipment. Industry bodies collectively agreed that sustained growth in manufacturing, infrastructure, and capital goods remains vital for driving large-scale employment generation, boosting export competitiveness, and securing long-term economic stability.
