Explore Crisil, a company of S&P GlobalFormerly known as Market Intelligence & Analytics
June 03, 2026
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Crisil Economy First Cut: Manufacturing lifts IIP
June 03, 2026
Report
Report
Macroeconomics | First cut
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- Industrial growth, as measured by the revised Index of Industrial Production (IIP) series, accelerated to 4.9% in April from 3.2% in March, driven by stronger growth in manufacturing and electricity production. As per the sectoral classification, manufacturing (6.2% vs 3.9%), and electricity and gas (4.9% vs 4.4%) were the key drivers of growth, while water supply, sewerage, and waste management recorded slightly stronger growth (6.6% vs 6.4%). On the other hand, mining was a drag, declining 5.1% compared with a decrease of 2.6% in the previous period.
- Industrial production could remain subdued in the months ahead owing to weaker global demand and supply chain disruptions. The larger risk, however, is rising costs. The energy supply shock caused by the conflict has morphed into a price shock, with the costs of fuel, transport and other imported inputs increasing.
- Better methodology, broader coverage in new IIP series: The new IIP basket includes 463 item groups, up from 407 in the 2011-12 series. The expanded basket now encompasses additional segments, such as water supply, sewerage and waste management, broadens the coverage of minerals to include rare earths and minor minerals, and provides disaggregated indices for electricity. These enhancements provide a more comprehensive view of industrial activity and capture emerging sectors better.
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