India's industrial output growth has slowed to 4.1% year-on-year in March, the lowest rate in five months, impacted by weaker performance in the electricity and manufacturing sectors. This figure, however, surpassed economists' expectations of 1-2% growth, following a 5.1% increase in February. The ongoing conflict in Iran has disrupted supply chains and raised input costs, contributing to the slowdown. Manufacturing growth fell to 4.3% from 5.9% in February, with significant contributions from basic metals (up 8.6%), motor vehicles (up 18.1%), and machinery (up 11.2%). Meanwhile, electricity generation growth moderated to 0.8%, although mining output rose to 5.5%. Despite these challenges, capital goods recorded a notable growth of 14.6%, reflecting strong investment demand, while infrastructure goods growth slowed to 6.7%. Economists anticipate that the deeper effects of the West Asia conflict may become evident in the first quarter of FY27 as uncertainty continues to affect producer sentiment.