IIP sees 4.8% YoY growth in January; manufacturing & electricity support rise

India’s Index of Industrial Production saw a 4.8% increase year-on-year in January 2026, according to the Ministry of Statistics & Programme Implementation. The rise in industrial output was largely driven by a 4.8 per cent expansion in manufacturing and a 5.1 per cent improvement in electricity generation. Mining activity also supported overall growth, registering a 4.3 per cent uptick during the month.Estimates placed IIP at 169.4 for January 2026, compared with 161.6 in January 2025. This follows a stronger reading in December 2025, when industrial production had grown by 7.8 per cent. For January 2026, the sector-specific indices stood at 157.2 for mining, 167.2 for manufacturing and 212.1 for electricity.Within manufacturing, 14 of the 23 industry groups at the NIC two-digit level posted year-on-year gains in January. The strongest contributors were manufacture of basic metals, which rose 13.2 per cent; manufacture of motor vehicles, trailers and semi-trailers, up 10.9 per cent; and manufacture of other non-metallic mineral products, which increased 9.9 per cent. Growth in basic metals was supported by items such as flat products of alloy steel, MS slabs, and hot-rolled coils and sheets of mild steel.The automobile category advanced on the back of higher output of auto components and spare parts, commercial vehicles, and bus and minibus bodies or chassis. In the non-metallic mineral products segment, cement of all types, cement clinkers and stone chips were key contributors.According to use-based classification, output of primary goods grew 3.1 per cent, capital goods rose 4.3 per cent and intermediate goods increased 6 per cent compared with January 2025. Infrastructure and construction goods recorded the sharpest rise at 13.7 per cent, while consumer durables expanded 6.3 per cent. In contrast, consumer non-durables declined by 2.7 per cent. The ministry identified infrastructure and construction goods, intermediate goods and primary goods as the leading drivers of growth under this classification.