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Industrial production growth slows to 4.8% in January; manufacturing, electricity sectors expand

India’s industrial output posted a modest uptick in January 2026, with the Index of Industrial Production (IIP) recording a year-on-year growth of 4.8 per cent, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

The growth rate marked a decline from December’s revised quick estimate of 7.8 per cent, signalling a moderation in overall industrial momentum as the new calendar year began.

Manufacturing grew by 4.8 per cent, electricity by 5.1 per cent, while mining expanded by 4.3 per cent.

The quick estimate of the general IIP stood at 169.4 in January 2026, up from 161.6 in January 2025. Within the manufacturing segment, 14 of the 23 industry groups at the two-digit National Industrial Classification level recorded positive growth.

Leading contributors to manufacturing expansion included basic metals, motor vehicles and other non-metallic mineral products. Basic metals saw a growth of 13.2 per cent, powered by higher production of alloy steel products and mild steel coils. Motor vehicles, trailers and semi-trailers grew by 10.9 per cent, while other non-metallic mineral products, including cement and stone chips, expanded by 9.9 per cent.

From a use-based perspective, infrastructure and construction goods recorded robust growth of 13.7 per cent, while intermediate goods expanded by 6.0 per cent. Growth was also seen in consumer durables at 6.3 per cent. However, consumer non-durables contracted by 2.7 per cent.

The quick estimates for January 2026 will be subject to revision as more data from source agencies becomes available. The Ministry also finalised the December 2025 indices in light of updated inputs from reporting units.

The next release, covering the IIP for February 2026, is scheduled for March 30.

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