India's industrial sector witnessed a modest improvement in March 2025, with factory output — measured by the Index of Industrial Production (IIP) — growing by 3%. This marks a slight uptick compared to previous months, reflecting a cautious but steady recovery in manufacturing, mining, and electricity sectors amid global uncertainties and domestic policy adjustments.

Key Ponits

• The manufacturing sector contributed moderately to this growth, while mining registered a slight increase.
• Electricity production remained stable, supporting overall industrial output.
• The 3% rise is higher than the sub-2% growth seen in previous months, signaling a gradual recovery.
• Global supply chain issues and high input costs continue to pose challenges for sustained growth.
• Government support through production-linked incentive (PLI) schemes and infrastructure investments is aiding industrial performance.