Buoyed by manufacturing and electricity sectors, India’s industrial production grew 4.8 percent in January year-on-year, according to Monday’s release from the Ministry of Statistics and Programme Implementation. The quick IIP estimate hit 169.4, surpassing January 2025’s 161.6.
Key drivers: manufacturing at 4.8 percent and electricity at 5.1 percent, with mining contributing 3.2 percent. Indices for the month: mining 157.2, manufacturing 167.2, electricity 212.1.
In manufacturing, 14 out of 23 NIC 2 two-digit groups expanded. Leading the pack—basic metals with 13.2 percent growth, motor vehicles/trailers at 10.9 percent, and non-metallic minerals at 9.9 percent.
Use-based metrics showed primary goods at 167.9, capital goods at 124.4, intermediate at 182.8, infrastructure/construction goods at 227.7, consumer durables 138.2, and non-durables 160.7.
Building on momentum, December delivered 7.8 percent IIP growth—the strongest in over 24 months—powered by 8.1 percent manufacturing expansion in 16 groups, including metals, autos, pharma, and chemicals. November’s 7.2 percent growth preceded it.
This streak reflects industrial resilience amid economic headwinds. While consumer segments show steady demand, capital goods’ moderation points to cautious capex. Policymakers may see this as validation for ‘Make in India’ initiatives, as core sectors anchor recovery. Sustained trends could bolster Q4 GDP significantly.