New Delhi, April 26 -- India's Index of Industrial Production (IIP) growth is expected to have moderated sharply to 2% year-on-year in March 2026, down from 5.2% in February and 3.9% in March 2025, as broad-based weakness in manufacturing and energy sectors weighed on output amid rising input costs and supply disruptions, according to a research report by Union Bank of India.

The report said that, the slowdown reflects the impact of higher input costs on production margins and demand, even as some high-frequency indicators showed mixed resilience.

The core sector, which contributes nearly 40% to IIP, contracted by 0.4% in March, marking its lowest level in 19 months compared to a revised 2.8% growth in February and 4.5% expansion in Mar...