Industrial Growth Slips to 4.1% in March; Mining Hold Steady But Power Sector Drags

India’s factories and mines closed the fiscal year with modest gains but slower momentum. Official data showed overall industrial output rising 4.1% in 2025-26, just above the 4% growth in 2024-25, signalling a still-fragile recovery as the new year started.

The latest reading of the Index of Industrial Production confirmed a clear loss of pace in March 2026. Industrial production expanded 4.1% that month, easing from 5.1% in February and touching the weakest growth since October 2025, according to government figures released on Tuesday.

Industrial production trends in March 2026

Electricity dragged the March 2026 industrial numbers. Power generation in the month grew only 0.8%, compared with a 7.5% increase in March 2025. Analysts linked the near-flat demand to unusual weather patterns and an unfavourable base, which reduced year-on-year growth.

Despite the softer headline index, key parts of the industrial production basket held up. Manufacturing activity rose 4.3% in March 2026, helped by steady demand for “basic metals” and “motor vehicles.” Mining performed even better, with output up 5.5%, against just 1.2% in March 2025.

Sector-wise industrial production and output

Use-based data highlighted how investment-linked areas continued to support overall industrial production. “Infrastructure and construction goods” remained firm through 2025-26, mirroring the government’s continued focus on capital expenditure. In contrast, consumer durables showed clear fatigue, hinting that spending on expensive household items had begun to stabilise in both rural and urban markets.

The headline trends in March 2026 industrial production and the fiscal year can be summarised as follows.

Category	Period	Growth rate
Index of Industrial Production	March 2026	4.1%
Index of Industrial Production	February 2026	5.1%
Index of Industrial Production	Full year 2025-26	4.1%
Index of Industrial Production	Full year 2024-25	4.0%
Electricity	March 2026	0.8%
Electricity	March 2025	7.5%
Manufacturing	March 2026	4.3%
Mining	March 2026	5.5%
Mining	March 2025	1.2%

Industrial production outlook for the new fiscal year

With the fresh fiscal year underway, the direction of industrial production will depend heavily on two factors. Economists are watching whether private consumption strengthens after the recent cooling in durable goods, and how global energy prices move, given their impact on electricity costs and demand.

FAQs

What was the overall growth rate of India's industrial output for 2025-26, and how does it compare to the previous year?

Industrial output rose 4.1% in 2025-26, marginally higher than the 4.0% growth recorded in 2024-25.

How did March 2026's industrial production performance differ from February 2026?

March 2026's production grew 4.1%, easing from 5.1% in February 2026, marking the slowest pace since October 2025.

Which sector led the March 2026 industrial activity, and what were its growth figures?

Mining led the sector with 5.5% growth in March 2026, while manufacturing grew 4.3% and electricity only 0.8%.

What trends were observed in use-based indicators such as infrastructure, construction goods, and consumer durables?

Infrastructure and construction goods remained firm, supporting overall output, whereas consumer durables showed fatigue and weaker demand for expensive household items.

What factors could influence the next fiscal year's industrial production, according to the outlook?

The pace will depend on stronger private consumption, especially for durable goods, and movements in global energy prices affecting electricity costs and demand.