Industrial activity stays resilient despite global conflict: RBI bulletin

India's industrial sector showed strength in April even as the West Asia conflict weighed on global trade. High-frequency indicators point to resilience, with the index of eight core industries rising on the back of cement, steel, and electricity production. The manufacturing PMI edged up, though cost pressures and geopolitical spillovers kept growth in new orders and output subdued. Automobile production surged across passenger vehicles, two-wheelers, and three-wheelers, all recording double-digit growth, supported by strong demand. Capital goods imports also grew sharply, signalling continued investment momentum.

Quarterly results of listed private non-financial companies for Q4:2025-26 reflected improved business performance. Aggregate sales rose in double digits, with manufacturing companies benefiting from automobiles and iron and steel. In services, both IT and non-IT firms maintained growth despite global uncertainties, with wholesale and retail trade driving non-IT gains.

Operating profits of manufacturing companies remained stable despite higher input costs, though margins softened. Non-IT services companies saw sharp profit growth compared to the previous quarter, while IT firms also recorded stronger profit growth. However, operating margins moderated sequentially across both IT and non-IT services.

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