India’s industrial production growth remains almost flat at 3 per cent in March sequentially, though, on a year-on-year basis, it slipped from 5.5 per cent, mainly due to poor performance of the manufacturing, mining and power sectors.

The government also revised the industrial growth figure downward to 2.7 per cent for February 2025 from the provisional estimate of 2.9 per cent earlier this month, according to the official data released on Monday.

In 2024-25, IIP decelerated to a four-year low of 4 per cent. It was 5.9 per cent in 2023-24 and the previous low was recorded at -8.4 per cent in 2020-21.

The growth was 11.4 per cent in 2021-22 and 5.2 per cent in 2022-23.

Factory output, measured in terms of the Index of Industrial Production (IIP), rose 5.5 per cent in March 2024.

The data released by the National Statistics Office (NSO) also showed that the manufacturing sector’s output growth slightly decelerated to 3 per cent in March 2025 from 5.9 per cent in the year-ago month.

Mining production dipped to 0.4 per cent from 1.3 per cent growth a year ago.

Power output also slowed to 6.3 per cent in March 2025 against 8.6 per cent in the year-ago period.

Aditi Nayar, chief economist & head - research and outreach, Icra, said, “In sequential terms, the improvement in YoY (year-on-year) growth of electricity and mild uptick in that of manufacturing was offset to a large extent by the dip in the growth of mining.”

“Looking ahead, while there is some evidence and commentary around frontloading in exports to the US, we need to see whether this is driven by redirection away from other geographies or a bump up in output in the ongoing month.”

The capital goods segment growth fell to 2.4 per cent in March 2025 against 7 per cent in the year-ago period.

Consumer durables (or white goods production) grew 6.6 per cent against a growth of 9.5 per cent in March 2024.