New Delhi: India’s industrial output growth slowed to 4.8% year-on-year in January, down from 7.8% in December 2025 (quick estimate) and 8% as per the revised December figure, according to data released on Monday by the Ministry of Statistics and Programme Implementation (MoSPI). The moderation reflects softer momentum in mining and manufacturing, even as electricity generation remained comparatively resilient.
The Index of Industrial Production (IIP) stood at 169.4 in January this year, up from 161.6 a year earlier. Sector-wise, mining expanded 4.3%, marginally lower than 4.4% growth recorded in January 2025, signalling steady but subdued extraction activity.
Primary goods recorded 3.1% growth and capital goods 4.3%, suggesting moderate expansion in core and investment-related production. In contrast, consumer non-durables contracted 2.7%, signalling weakness in segments linked to everyday consumption.
Manufacturing, which carries the highest weight in the index, grew 4.8%, slowing from 5.8% in January last year, suggesting easing demand or base effects in certain segments. Electricity output rose 5.1%, an improvement over 2.4% growth a year ago, indicating stable power demand and supply conditions.
The sectoral indices for January 2026 stood at 157.2 for mining, 167.2 for manufacturing and 212.1 for electricity. Within manufacturing, 14 of 23 industry groups at the NIC 2 digit-level recorded positive growth over January 2025, highlighting a mixed but still broad-based expansion.
Among manufacturing segments, ‘manufacture of basic metals’ emerged as the strongest contributor, growing 13.2%, supported by higher output of flat alloy steel products, MS slabs and hot-rolled coils and sheets of mild steel. ‘Manufacture of motor vehicles, trailers and semi-trailers’ rose 10.9%, driven by increased production of commercial vehicles, auto components and bus and minibus chassis, reflecting continued strength in transport and infrastructure-linked demand. ‘Manufacture of other non-metallic mineral products’ expanded 9.9%, aided by higher output of cement, cement clinkers and stone chips, pointing to sustained construction activity.
Infra, Construction Sectors
Use-based classification data show infrastructure and construction goods as the clear growth leader, with output rising 13.7% year-on-year in January 2026. Intermediate goods grew 6%, while consumer durables rose 6.3%, indicating some resilience in investment-linked and discretionary consumption segments.
The January data suggest that while industrial activity remains in expansion mode, the pace has eased from the strong print seen in December. The sharp growth in infrastructure and construction goods indicates that public and private capital expenditure may be supporting output. However, the slowdown in manufacturing growth and the contraction in consumer non-durables point to uneven demand conditions, with consumption in essential goods yet to gather broad momentum.
The IIP quick estimates are subject to revision as additional data from source agencies and factories are incorporated in subsequent releases.
(Cover photo by NIloy Tanvirul on Unsplash)