Industrial activity in India is reviving in the current financial year despite global and geopolitical challenges, with the Index of Industrial Production (IIP) growth averaging 6.3% in the first four months of FY27, higher than 4% in the same period last year. At current pace, IIP growth is likely to be the highest since FY24. However, a deeper dive shows that this recovery in industrial performance in increasingly led by investments and not consumption, which is likely to face more risks from deficient rainfall and El Nino, economists said.