IIP growth slows to 4.8% in January amid sluggish performance by manufacturing, mining sectors
The Ministry of Statistics & Programme Implementation in its latest report has showed that Index of Industrial Production (IIP) recorded a 4.8% year-on-year growth in January 2026, which is lower than 7.8% (Quick Estimate) growth in the month of December 2025. The industrial growth was 5.2% in January 2025. The growth was slower due to sluggish performance by manufacturing and mining sectors. The Quick Estimates of IIP stood at 169.4 in January 2026 against 161.6 in January 2025. Besides, the country's industrial production grew by 4.0% during the April-January period of FY26 compared to 4.2% in the corresponding period of last year.
The Indices of Industrial Production for the three sectors, Mining, Manufacturing and Electricity sectors for the month of January 2026 stood at 157.2, 167.2 and 212.1 respectively. The growth rate in mining sector came in at 4.3% for the month of January 2026, lower as compared to 6.9% in December 2025 and 4.4% in January 2025. The growth rate in manufacturing sector stood at 4.8% for the month of January 2026, lower as compared to 8.4% in December 2025 and 5.8% in January 2025. Similarly, growth rate in electricity sector stood at 5.1% for the month of January 2026, lower as compared to 6.3% in December 2025, while growth was higher compared to 2.4% in January 2025.
Within the manufacturing sector, 14 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in January 2026 over January 2025. The top three positive contributors for the month of January 2026 are - ‘Manufacture of basic metals’ (13.2%), ‘Manufacture of motor vehicles, trailers and semi-trailers’ (10.9%) and ‘Manufacture of other non-metallic mineral products’ (9.9%).
In the industry group ‘Manufacture of basic metals’, item groups Flat products of Alloy Steel’, MS slabs and HR coils and sheets of mild steel have shown significant contribution in growth. In the industry group Manufacture of motor vehicles, trailers and semi-trailers item groups Auto components/ spares and accessories, Commercial Vehicles and Bodies/ chassis of buses and minibuses have shown significant contribution in growth. In the industry group Manufacture of other non-metallic mineral products, item groups Cement- all types, Cement Clinkers, and Stone chips have shown significant contribution in growth.
As per the use base classification, the indices stood at 167.9 for Primary Goods, 124.4 for Capital Goods, 182.8 for Intermediate Goods and 227.7 for Infrastructure/ Construction Goods for the month of January 2026. Further, the indices for Consumer durables and Consumer non-durables stood at 138.2 and 160.7 respectively.
The growth in Primary goods segment stood at 3.1% in January 2026, lower compared to 4.4% in December 2025 and 5.5% in January 2025. The growth in Capital goods segment stood at 4.3% in January 2026, lower compared to 8.3% in December 2025 and 10.2% in January 2025.The growth in Intermediate goods segment stood at 6.0% in January 2026, lower compared to 7.8% in December 2025, while it is higher than 5.3% in January 2025.The growth in Infrastructure/ Construction Goods segment stood at 13.7% in January 2026, higher compared to 12.8% in December 2025 and 7.3% in January 2025. The growth in Consumer durables segment stood at 6.3% in January 2026, lower compared to 12.4% in December 2025 and 7.1% in January 2025. There is contraction in growth in Consumer non-durables segment at (-) 2.7% in January 2026, over a growth of 8.5% in December 2025 and 0.1% in January 2025.
