India’s industrial activity grew at a steady but slower pace in March 2026, with factory output rising 4.1% year-on-year, according to official data released on April 28.The growth was led by manufacturing and mining, which expanded 4.3% and 5.5% respectively. Electricity output, however, saw muted growth of just 0.8%, dragging the overall momentum.
The latest reading marks a slowdown from February’s 5.2% growth, indicating that industrial activity is holding up but losing some steam.
Within manufacturing, 14 out of 23 industry groups recorded growth. Key drivers included metals, automobiles, and machinery, with strong demand for auto components, commercial vehicles, and industrial equipment.On the demand side, capital goods — a proxy for investment activity — surged 14.6%, signalling continued strength in infrastructure and capacity expansion. Infrastructure and construction goods also grew 6.7%.Consumer-facing segments were more subdued, with consumer non-durables growing just 1.1%, suggesting softer everyday demand.Overall, the data points to a resilient but uneven recovery in India’s industrial sector, with investment-led growth continuing to outpace consumption.
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