Industrial Production Growth in January 2026: A Comprehensive Overview

The Index of Industrial Production (IIP) reported a 4.8% rise in January 2026, driven by growth across the Manufacturing and Electricity sectors. Mining also played a role. Positive contributors include the Manufacture of basic metals and motor vehicles, noting a decline in consumer non-durables. Infrastructure goods led growth at 13.7%.

The latest data from the Ministry of Statistics & Programme Implementation reveals a 4.8% year-on-year growth in the Index of Industrial Production (IIP) for January 2026. This expansion is chiefly supported by comparable growth in both the Manufacturing and Electricity sectors, according to an official press release issued on Monday.

In January 2026, the Mining sector contributed as well, with the IIP Quick Estimates reaching 169.4, up from 161.6 in January 2025. The previous month had shown a 7.8% growth rate. Distinct sector performance was noted with indices of 157.2 for Mining, 167.2 for Manufacturing, and 212.1 for Electricity, where 14 out of 23 industry groups at the NIC 2-digit level reported positive growth.

The Automotive and Non-metallic Mineral segments showed notable gains, spurred by items like auto components and cement products. Use-based classification indicated primary goods grew by 3.1%, capital goods by 4.3%, and intermediate goods by 6%. While infrastructure goods excelled at 13.7%, non-durables saw a contraction of 2.7%. Compilation was completed at an 89.53% weighted response rate.

(With inputs from agencies.)