Primary and consumer goods witnessed a sharp slowdown, indicating uneven sectoral performance. | Photo Credit: STRINGER/INDIA

Capital goods output emerged as the strongest-performing segment of India’s industrial sector in April 2026, registering a robust 16 per cent growth even as overall industrial production growth eased to 4.9 per cent, according to a report by Bank of Baroda based on the revised Index of Industrial Production (IIP) series.

Industrial production grew 4.9 per cent in April 2026, lower than the 5.7 per cent growth recorded in the corresponding month last year. The report noted that slower growth was visible across sectors, with mining output contracting and manufacturing, electricity, and water supply witnessing deceleration.

However, capital goods bucked the broader trend and continued to record double-digit growth.

“Within use-based classification, capital goods output shines and again registered a robust double digit growth of 16% in Apr’26 against 13.8% in Apr’25,” the report said.

The growth in capital goods was significantly higher than the overall industrial production growth rate and also exceeded the pace recorded a year ago.

Infrastructure goods steady, primary goods slow sharply

Besides capital goods, infrastructure and construction goods output rose 7.1 per cent in April 2026 from 6.4 per cent in April 2025, while intermediate goods output increased 7.7 per cent compared with 7.6 per cent a year earlier.

In contrast, primary goods output growth slowed sharply to 0.8 per cent from 3.3 per cent in April 2025. Consumer goods, including durable and FMCG goods, also registered “much slower growth in Apr’26 as compared with last year,” according to the report.

Manufacturing and electricity growth moderate, mining contracts

At the sectoral level, manufacturing output grew 6.2 per cent in April 2026, marginally lower than 6.4 per cent a year ago. Electricity generation growth moderated to 4.9 per cent from 6.1 per cent, while mining output contracted 5.1 per cent after recording 0.6 per cent growth in April 2025.

Global headwinds pose risks to industrial outlook

The report said global challenges continue to pose downside risks to industrial growth, with certain industries potentially facing direct impacts from supply-chain disruptions, higher input costs and elevated energy prices.

“However, these disruptions are expected to be short term and needs careful monitoring,” the report added.

Revised IIP expands coverage and sectoral scope

The revised IIP series has expanded coverage and increased the number of items in the basket to 463 from 407 earlier, incorporating sectors such as water supply, sewerage and waste management activities.

Published on June 2, 2026