India's Industrial Production Grows by 4.8% in January, Driven by Manufacturing and Electricity
Synopsis
Key Takeaways
New Delhi, March 2 (NationPress) The Index of Industrial Production (IIP) has shown a notable increase of 4.8 percent year-over-year in January, with the manufacturing sector contributing 4.8 percent and the electricity sector achieving a 5.1 percent rise, according to the Ministry of Statistics and Programme Implementation released on Monday.
The Quick Estimates of IIP stand at 169.4, an improvement from 161.6 in January 2025.
For January 2026, the indices for the mining, manufacturing, and electricity sectors are recorded at 157.2, 167.2, and 212.1, respectively.
Within the manufacturing sector, 14 out of 23 industry groups at the NIC 2-digit level demonstrated positive growth compared to January 2025.
The leading contributors to growth for January 2026 include the Manufacture of basic metals at 13.2 percent, followed by the Manufacture of motor vehicles, trailers, and semi-trailers at 10.9 percent, and the Manufacture of other non-metallic mineral products at 9.9 percent.
According to the use-based classification, the indices are 167.9 for Primary Goods, 124.4 for Capital Goods, 182.8 for Intermediate Goods, and 227.7 for Infrastructure/Construction Goods in January 2026.
Additionally, the indices for Consumer durables and Consumer non-durables are reported at 138.2 and 160.7, respectively.
Previously, India's industrial production saw a significant surge of 7.8 percent in December 2025, marking its most substantial growth in over two years, fueled by robust performance across manufacturing, mining, and electricity sectors.
This marked the second consecutive month of strong year-on-year growth for the country's index of industrial production (IIP), following a 7.2 percent increase in November 2025.
In December, the manufacturing sector alone achieved an 8.1 percent growth, with 16 out of 23 industry groups reporting positive growth. The primary contributors in this sector were the manufacture of basic metals, motor vehicles, as well as pharmaceuticals and chemicals.