Step fall: Index of industrial production

INDIA’s factory output performance was measured monthly by the Index of Industrial Production (IIP) and issued by the Ministry of Statistics and Program Implementation (MOSPI), slowing down to 2.7% of the eight -month low of an eight -month low in April, which was financially in the financial 2026. It also identified the almost decline from the growth of 5.2% last April. It is associated with the monthly gauge of eight core areas by the Ministry of Commerce and Industry, which recorded a 0.5% increase in April, which is eight months lower. The more important thing is that this is a decline from the last April 6.9%. Eight core sector make about 40% of the weight of the items included in the IIP. This falls behind a 4% increase in industrial production for the last financial year, the lowest in the last four years. Especially the theme of concern is 0.2%in mining, the first since August 2024. While the full value of mining exports has increased from $ 25 billion to $ 25 billion in the last decade to $ 42 billion in FY 25, its share in exports has fallen from 8.1%to 5.1%. It is still not a susceptible part in India’s overall goods exports at the time of great trade instability. However, both manufacturing and power generation also slowed down, which increased to 3.4% (4.2%) and 1.1% (10.2%) respectively in April.

While business and tariff-related uncertainties are most likely to affect the production of goods, continuous contraction in the production of consumer non-durables for the third consecutive month suggests consistently low rural consumption, as essential foods such as food consumers make an important part of non-durables. This is a clear indication that despite retail inflation, at a rate of 3.16% at a low of 6 years in April, it has not been translated into high spending power for rural communities, where consumers are the most demanded demand for non-durables. Food prices became contracted for the sixth straight month, which fell below the MSP rates for most staples in the mandis. The government should focus on increasing rural income by implementing MSP for farm production. This will help in increasing rural consumption. However, an increase of 20.3% in the production of capital goods in April, from a low base, indicates confidence in the domestic economy as investors continue with their plans to diversify exports, try to continue to remain unstable in the near period while trying to rely less on the US with business related areas, the Center should push the private sector to increase the capital expenditure. This will increase income, and will help in increasing the demand for consumption. Export-oriented areas should also aim to ring itself with a shock of tariffs, prices and supply chains, while there is also diversity outside the traditional export areas of the US and the European Union.