Staff engaged on a metal processing manufacturing line in a manufacturing facility. File | Picture credit score: Reuters
Industrial manufacturing, as measured by the Industrial Manufacturing Index, grew by 4.9% in April 2026, slower than 5.8% in the identical interval final yr, in accordance with the brand new IIP sequence launched on Monday (June 1, 2026). The IIP sequence beforehand had a base yr of 2011-2012, however has now been up to date to 2022-23.
The brand new sequence expands protection by incorporating gasoline provide, water, sewerage and waste administration actions to the present core classes of mining and quarrying, manufacturing and energy. Of the 4 sectoral indices, three grew at a slower tempo and one decreased on a year-on-year foundation within the reporting month, with mining and quarrying manufacturing falling by greater than 5% in April 2026. Output within the manufacturing sector grew by 6.2% within the reporting month, barely slower than the 6.3% in 2025.
Within the manufacturing business, which accounts for roughly 75% of the IIP basket, six industries shrank, together with main industries akin to “coke and refined petroleum merchandise” manufacturing (down 0.4%) and “clothes” manufacturing (output down 7%). Manufacturing of non-furniture wooden merchandise contracted essentially the most, with output lowering by 12.5%.
The remaining industries within the manufacturing business additionally grew, with output within the electrical tools business growing by 19.2% in April 2026.
Below use-based classification, this sequence classifies industries into major items, capital items, intermediate items, infrastructure/building items, client durables, and client non-durables.
In April 2026, progress in three out of six classes slowed yr over yr. Progress in major items, sturdy client items, and non-durable client items in April 2026 was 0.8%, 4.3%, and a pair of.8%, respectively, slower than in the identical month in 2025. The expansion of intermediate items manufacturing accelerated by 0.19%, leading to a progress fee of seven.7% in April 2026 in comparison with the identical month of the earlier yr.
Manufacturing progress in capital items and infrastructure items accelerated to 16% and seven.1%, respectively, within the reporting month in comparison with the identical month of the earlier monetary yr.
The bottom years for main macroeconomic indicators, which was 2011-2012, have been revised to 2026, beginning with GDP. The IIP would be the newest model of the revised measures, with 2022-23 as the bottom yr. The dataset assumes an index of 100 in 2022-23 and calculates the expansion fee of the index in subsequent years.
Along with including new disciplinary divisions, the brand new sequence additionally requires “improved granularity.” For instance, the mining sector index will now embody knowledge classifications for gasoline minerals, metallic minerals together with uncommon earth minerals, and non-metallic minerals together with hint minerals. Equally, the electrical energy index is split into renewable and non-renewable sources.
The brand new product basket for calculating IIP consists of 1,042 merchandise mapped to 463 merchandise teams. Within the previous sequence, solely 839 gadgets have been mapped to 407 merchandise teams. Moreover, the weights offered to every sector and every business inside the manufacturing business have been revised in step with the up to date Gross Worth Added (GVA) 2022-23 sequence.
The brand new sequence now permits customers to make use of formulation to hyperlink previous and new knowledge sequence to make sure comparability.
