India’s industrial production grew 4.1% year-on-year in March 2026, down from a revised 5.1% in February and marking the slowest pace in five months, though still above market expectations of 3.7%. While activity remained solid, the moderation partly reflected the impact of the war in the Middle East on Indian goods production, with higher energy prices and rising inflation risks weighing on output amid pressure on the rupee.
Manufacturing, which accounts for more than 77% of total industrial output, expanded 4.3%, easing from 5.9% in the previous month. Mining output accelerated, rising 5.5% compared with 3.1% in February, while electricity production growth slowed to 0.8% from 2.3%, constrained by higher feedstock costs.
