NewKerala.com

Industrial Growth Holds Steady at 4.8% in Jan 2026, Led by Manufacturing

India's Index of Industrial Production (IIP) grew by 4.8% year-on-year in January 2026, according to data from the Ministry of Statistics. The expansion was led by the manufacturing and electricity sectors, which grew by 4.8% and 5.1% respectively. Notably, the Infrastructure/Construction Goods category saw the highest growth at 13.7%, while consumer non-durables contracted by 2.7%. The quick estimates were compiled with a high weighted response rate of 89.53%.

Key Points: IIP Growth 4.8% in Jan 2026: Manufacturing, Electricity Lead

  • 4.8% YoY IIP growth in Jan 2026
  • Manufacturing sector grows 4.8%, Electricity 5.1%
  • Infrastructure/Construction Goods surge 13.7%
  • Consumer non-durables contract by 2.7%
2 min read

Index of Industrial Production recorded a 4.8 per cent YoY growth in Jan 2026

India's industrial output grew 4.8% YoY in January 2026, driven by manufacturing (4.8%) and electricity (5.1%). See sector-wise data and top contributors.

"The industrial expansion remains supported by a 4.8 per cent growth in the Manufacturing sector and a 5.1 per cent growth in the Electricity sector. - Ministry of Statistics"

New Delhi, March 2

The Index of Industrial Production recorded a 4.8 per cent year-on-year growth in January 2026, an official press release issued by the Ministry of Statistics & Programme Implementation read.

Data released on Monday by the Ministry shows that the industrial expansion remains supported by a 4.8 per cent growth in the Manufacturing sector and a 5.1 per cent growth in the Electricity sector.

The Mining sector also contributed to the overall performance with a growth rate of 4.3 per cent during the same period.

The Quick Estimates of IIP for January 2026 stand at 169.4 against 161.6 recorded in January 2025.

This growth follows the previous month's performance, where the IIP growth rate was 7.8 per cent in December 2025. The specific indices for the Mining, Manufacturing, and Electricity sectors for January 2026 stand at 157.2, 167.2, and 212.1, respectively.

Within the manufacturing segment, 14 out of 23 industry groups at the NIC 2-digit level recorded positive growth in January 2026 over the corresponding month of the previous year.

The top three positive contributors include "Manufacture of basic metals" at 13.2 per cent, "Manufacture of motor vehicles, trailers and semi-trailers" at 10.9 per cent, and "Manufacture of other non-metallic mineral products" at 9.9 per cent. In the basic metals category, item groups such as "Flat products of Alloy Steel," "MS slabs," and "HR coils and sheets of mild steel" showed significant contribution.

The automotive segment saw growth driven by "Auto components/ spares and accessories," "Commercial Vehicles," and "Bodies/ chassis of buses and minibuses." Similarly, the non-metallic mineral products group benefited from "Cement- all types," "Cement Clinkers," and "Stone chips."

As per the use-based classification, the growth rates in January 2026 over January 2025 were 3.1 per cent in Primary goods, 4.3 per cent in Capital goods, and 6 per cent in Intermediate goods.

The highest growth was observed in Infrastructure/Construction Goods at 13.7 per cent, while Consumer durables grew by 6.3 per cent.

However, consumer non-durables recorded a contraction of negative 2.7 per cent. The Ministry noted that the top three positive contributors to growth based on this classification were Infrastructure/ construction goods, Intermediate goods, and Primary goods.

The Ministry of Statistics & Programme Implementation stated that the Quick Estimates for January 2026 were compiled at a weighted response rate of 89.53 per cent.

- ANI

Share this article:

Reader Comments

P
Priyanka N
The contraction in consumer non-durables (-2.7%) is a bit worrying. That's everyday items for common people. Growth numbers are good on paper, but is it reaching the middle and lower-income households? Need to focus on boosting demand at the grassroots level.
A
Aman W
Auto sector and basic metals doing well is excellent news for engineering and manufacturing hubs like Pune, Chennai, and Jamshedpur. This should help local economies. 🚗⚙️
S
Sarah B
Interesting data. The growth in electricity sector (5.1%) is crucial. Reliable power supply is the backbone of industrial growth. Hope this also translates into better residential supply with fewer cuts.
K
Karthik V
From 7.8% in Dec to 4.8% in Jan... that's a significant slowdown. While the overall trend is positive, we must understand the monthly volatility. The government should clarify if this is a seasonal adjustment or a concerning dip.
N
Nisha Z
Cement and steel growth means construction is booming! This is very visible in tier 2 and 3 cities. New projects everywhere. Positive sign for the economy's core strength. 🏗️

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50