India’s industrial output grew by 4.8% year-on-year in January 2026, driven primarily by strong performance in the manufacturing and electricity sectors, according to data released on Monday by the Ministry of Statistics and Programme Implementation (MoSPI).
IIP Rises to 169.4 in January
As per the Quick Estimates of the Index of Industrial Production (IIP), the index stood at 169.4 in January 2026, compared to 161.6 in January 2025.
Sector-wise performance for January 2026:
- Mining: 157.2
- Manufacturing: 167.2
- Electricity: 212.1
Manufacturing output rose by 4.8%, while electricity generation recorded a 5.1% increase, contributing significantly to overall industrial growth.
14 Out of 23 Industry Groups Post Positive Growth
Under the National Industrial Classification (NIC-2) at the two-digit level, 14 out of 23 industry groups recorded positive growth in January 2026.
Top Performing Industry Groups:
- Manufacture of Basic Metals – 13.2% growth
- Manufacture of Motor Vehicles, Trailers & Semi-Trailers – 10.9% growth
- Manufacture of Other Non-Metallic Mineral Products – 9.9% growth
These sectors played a key role in pushing industrial production higher.
Use-Based Classification Performance
According to use-based classification data for January 2026:
- Primary Goods: 167.9
- Capital Goods: 124.4
- Intermediate Goods: 182.8
- Infrastructure & Construction Goods: 227.7
- Consumer Durables: 138.2
- Consumer Non-Durables: 160.7
The data indicates steady momentum across infrastructure, capital goods, and consumer segments.
Strong Back-to-Back Growth Trend
January marked the second consecutive month of solid industrial growth. In December 2025, industrial production had surged 7.8%, the highest growth rate in over two years, supported by broad-based strength in manufacturing, mining, and electricity sectors.
In November 2025, IIP growth stood at 7.2%, reflecting consistent expansion.
During December, manufacturing alone had grown by 8.1%, with 16 out of 23 industry groups recording positive growth. Key contributors included basic metals, motor vehicles, pharmaceuticals, and chemicals.
Outlook: Sustained Industrial Momentum
The continued rise in IIP indicates stable industrial activity and strengthening economic momentum. Growth in manufacturing, infrastructure-related goods, and electricity output suggests improving demand conditions and investment activity.
With back-to-back strong readings, India’s industrial sector appears to be on a steady growth path heading into FY26.
