India’s Industrial Output Maintains Momentum with 4.8% IIP Growth in January 2026 

India’s industrial economy continued to expand in January 2026, with the Index of Industrial Production (IIP) rising 4.8% year-on-year, supported by broad-based growth in manufacturing and electricity. The latest quick estimate signals that industrial activity remains resilient, even as growth moderated from the stronger 7.8% expansion recorded in December 2025.
Manufacturing, which carries the largest weight in the index, expanded 4.8% in January 2026, while electricity output rose 5.1% and mining grew 4.3%. Together, these sectors pushed the overall IIP to 169.4, up from 161.6 a year earlier. The numbers suggest continuing demand across core industry segments, with power generation and factory output remaining the key drivers of growth.
Use-based classification also showed a mixed but healthy industrial pattern. Infrastructure and construction goods posted the strongest growth at 13.7%, followed by intermediate goods at 6.0% and consumer durables at 6.3%. Capital goods grew 4.3%, reflecting steady investment-linked demand, while consumer non-durables contracted 2.7%, indicating pressure in some household consumption categories.
The broad takeaway is that India’s industrial base is still expanding, but the pace is uneven across categories. Strong infrastructure and intermediate goods performance points to healthy investment momentum, while the weakness in consumer non-durables suggests that demand recovery is still not uniform across the economy.