India industrial output hits 5-month low of 4.1% in March as power, manufacturing drag

India’s industrial output growth slowed to a five-month low of 4.1% in March 2026, weighed down by subdued manufacturing and a sharp moderation in power generation amid disruptions linked to the West Asia crisis, according to official data released on Tuesday.

The factory output, measured by the Index of Industrial Production (IIP), had expanded 3.9% in March 2025, while growth for February 2026 was revised slightly lower to 5.1% from the earlier estimate of 5.2%, data from the National Statistics Office showed.

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The March reading marks the weakest pace since October 2025, when industrial growth had slipped to just 0.5%, indicating a loss of momentum toward the end of the financial year.

Manufacturing — the largest component of the index — grew 4.3% during the month, only marginally higher than 4% a year ago, suggesting a continued lack of strong acceleration in factory activity.

Power generation, however, emerged as the biggest drag, expanding just 0.8% compared with a robust 7.5% growth in March last year, reflecting softer demand and possible supply-side disruptions.

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In contrast, mining output showed stronger momentum, rising 5.5% against a low base of 1.2% in the corresponding period last year.

For the full financial year 2025–26, industrial growth remained broadly flat at 4.1%, compared with 4% in the previous year, underscoring a steady but uneven recovery in the sector.