India's industrial output expanded 4.1% year-on-year in March, marking the weakest pace of growth in five months as a cooling manufacturing sector and subdued power generation dragged on the headline figure.
Economists had penciled in a 3.7% increase for the month, while February's expansion was revised down to 5.1%. The march reading follows an earlier slowdown in October, when industrial output growth had fallen to 0.5% year-on-year.
The March data is the first monthly industrial print after the Iran war broke out following U.S. and Israeli strikes on February 28, an episode that has prompted concerns about energy availability for the world's third-largest crude importer.
Detailed sector readings for March
- Manufacturing output rose 4.3% year-on-year in March, down from a revised 5.9% increase in February.
- Electricity generation increased 0.8% year-on-year in March, after a 2.3% rise a month earlier.
- Mining activity climbed 5.5% year-on-year in March, up from a 3.1% gain in February.
- Output of consumer durables, including cars and phones, grew 5.3% year-on-year in March, below February's revised 7.1% growth.
- Consumer non-durables, such as food items and toiletries, recorded a 1.1% year-on-year rise in March, improving from a revised 0.5% decline in the prior month.
- Capital goods output jumped 14.6% year-on-year in March, compared with a revised 12.4% increase in February.
Aggregate performance
For the April-March 12-month period, industrial output grew 4.1%, marginally above the 4.0% increase recorded in the previous year.
The March figures highlight a mixed industrial picture: manufacturing and electricity showed slower momentum, while mining and capital goods delivered stronger gains. The data also comes at a time of heightened attention to global developments that can affect energy supply and industry activity.