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.
Also Read: India crude oil production falls for 11th year, gas declines againIn 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.