India’s Industrial Output Slows To 4.8% In January 2026, Down From 7.8% In December

Mining And Manufacturing Weigh On IIP

The Index of Industrial Production (IIP) rose 4.8% year-on-year in January 2026, compared with 7.8% in December 2025, as per MoSPI data. The moderation was led by slower growth in mining and manufacturing.
Manufacturing output expanded 4.8% in January 2026, lower than the 5.8% growth recorded in January 2025, according to MoSPI. Mining production increased 4.3% in January 2026, compared with 4.4% growth in the year-ago period. Electricity generation rose 5.1% in January 2026, higher than the 2.4% expansion seen in January 2025.

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Within manufacturing, 14 of the 23 industry groups recorded positive growth in January 2026 over January 2025, the ministry said.

Sector-Wise Performance

Among manufacturing segments, the manufacture of basic metals contributed to growth, supported by higher output of flat alloy-steel products and mild-steel coils and sheets, according to MoSPI. Motor vehicles, trailers and semi-trailers also registered growth, aided by increased production of commercial vehicles, auto components and bus chassis.

The manufacture of other non-metallic mineral products rose on the back of higher output of cement, cement clinkers and stone chips, the data showed.

In use-based classification, infrastructure and construction goods posted the highest annual growth at 13.7% in January 2026, according to MoSPI. Intermediate goods grew 6%, while consumer durables expanded 6.3% during the month.

Primary goods recorded a growth of 3.1% in January 2026 compared with a year earlier. Capital goods output rose 4.3% year-on-year. Consumer non-durables contracted 2.7% in January 2026 from the corresponding period last year.

The most recent IIP data shows that industrial growth slowed down at the beginning of 2026 compared to December 2025. The Ministry of Statistics and Programme Implementation says that this was not the case across all sectors.