India’s industrial production recorded a 4.8% year-on-year growth in January 2026, supported by steady expansion in the manufacturing and electricity sectors, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).
IIP Climbs to 169.4 in January
The Quick Estimates of the Index of Industrial Production (IIP) showed the index rising to 169.4 in January 2026, up from 161.6 in January 2025, reflecting sustained industrial momentum.
Sector-wise index figures for January 2026 were:
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Mining: 157.2
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Manufacturing: 167.2
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Electricity: 212.1
Manufacturing output grew by 4.8%, while electricity generation expanded by 5.1%, significantly contributing to the overall increase.
Majority of Industry Groups Report Positive Growth
Under the two-digit National Industrial Classification (NIC), 14 out of 23 industry groups posted positive growth during the month.
Key Growth Drivers:
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Basic Metals Manufacturing: 13.2%
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Motor Vehicles, Trailers & Semi-Trailers: 10.9%
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Other Non-Metallic Mineral Products: 9.9%
These sectors played a major role in boosting industrial output.
Performance by Use-Based Categories
Data under the use-based classification revealed the following index levels for January 2026:
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Primary Goods: 167.9
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Capital Goods: 124.4
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Intermediate Goods: 182.8
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Infrastructure & Construction Goods: 227.7
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Consumer Durables: 138.2
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Consumer Non-Durables: 160.7
The strong performance in infrastructure and intermediate goods points toward steady demand and construction activity.
Consistent Growth for Second Consecutive Month
January marks the second straight month of robust industrial growth. In December 2025, industrial output had risen 7.8%, the highest level in more than two years. November 2025 had also recorded a strong 7.2% growth.
In December, manufacturing alone grew by 8.1%, with 16 of 23 industry groups showing expansion. Basic metals, automobiles, pharmaceuticals, and chemicals were among the top contributors.
Industrial Sector Shows Steady Momentum
The latest IIP figures indicate that India’s industrial sector continues to maintain stable growth, supported by manufacturing resilience and higher electricity output. With consistent expansion across key sectors, industrial activity remains on a positive trajectory heading into the upcoming fiscal period.
