Industrial Production Grows 4.8% in January 2026; Manufacturing and Electricity Lead Recovery

India’s industrial activity recorded a 4.8 % year-on-year growth in January 2026, according to the latest Quick Estimate of the Index of Industrial Production (IIP) released by the Ministry of Statistics & Programme Implementation. The growth was supported by robust performance in the manufacturing and electricity sectors, which expanded by 4.8 % and 5.1 % respectively, while the mining sector contributed a 4.3 % increase in output.

The quick estimate — compiled from data received from source agencies based on production at factories and establishments — places the IIP index for January 2026 at 169.4, up from 161.6 in January 2025. This figure reflects a moderation from the 7.8 % growth seen in December 2025 but underscores continued expansion in industrial activity.

Within the manufacturing sector, 14 out of 23 industry groups showed positive year-on-year growth in January 2026. The top contributors to this uptick were the “Manufacture of basic metals” segment, which surged by 13.2 %, followed by “Manufacture of motor vehicles, trailers and semi-trailers” with a 10.9 % increase, and “Manufacture of other non-metallic mineral products” which rose by 9.9 %. These industry groups were propelled by strong output of key products such as flat alloy steel products, commercial vehicles, and cement and stone chips.

Use-Based Classification: Goods Demand Trends

When examined by use-based classification, the data shows varied growth across different categories of goods. Infrastructure and construction goods saw the strongest rise, with an index of 227.7 and a year-on-year growth rate of 13.7 %, highlighting increasing demand from the construction and development sectors. Intermediate goods (182.8) and primary goods (167.9) also recorded solid growth, up 6.0 % and 3.1 % respectively. Meanwhile, capital goods grew by 4.3 %, reflecting steady investment activity. In consumer categories, consumer durables rose by 6.3 %, while consumer non-durables contracted by 2.7 %, showing uneven momentum in household demand.

The quick estimates for January 2026 and the revised figures for December 2025 were compiled at weighted response rates of around 89.5 % and 92.6 % respectively, ensuring a broad coverage of industrial activity.

The index for February 2026 is scheduled for release on Monday, 30 March 2026, which will provide further insight into the trajectory of industrial growth during the early months of the year.

Source; PIB