Latest IIP data for FY26 offers a sobering picture. General IIP grew by 4.1% in FY26, only marginally higher than 4.0% in FY25. This remains well below the pace required to sustain the country's growth ambitions. More importantly, it reflects a long-term pattern: between FY15 and FY26, general IIP has grown at an average annual rate of around 3.5%, while manufacturing has expanded at a similar pace of 3.3% a year.
Despite a sustained infra push, strong fiscal support, PLIs and one of the world's fastest-growing domestic consumer markets, manufacturing growth remains stuck in second gear.
