January IIP Data: India’s industrial output growth slows to 4.8% as manufacturing drags | DETAILS

India’s factory output slowed to 4.8 per cent in January, according to data released by the Ministry of Statistics and Programme Implementation on Monday. The Index of Industrial Production (IIP) rose 4.8 per cent year-on-year during the month, compared with 7.8 per cent growth in December.

The slowdown was led by the manufacturing sector, which also recorded growth of 4.8 per cent. The ministry said this was driven by higher production of basic metals, motor vehicles, trailers and semi-trailers and non-metallic mineral products.

The factory output, measured in terms of the Index of Industrial Production (IIP), expanded by 5.2 per cent in January 2025. The previous low was witnessed in October 2025 at 0.5 per cent. The IIP growth was 7.2 per cent in November 2025, an official statement said.

The National Statistics Office (NSO) revised the industrial production growth for December 2025 to 8 per cent from the provisional estimate of 7.8 per cent released in January 2026, according to PTI. The NSO data further showed that the manufacturing sector's output growth decelerated to 4.8 per cent in January 2025, compared to 5.8 per cent in the year-ago month.

Mining production growth also slowed marginally to 4.3 per cent compared to a growth of 4.4 per cent recorded a year ago. Power generation grew by 5.1 per cent in January 2025, compared to 2.4 per cent expansion in the year-ago period, as per PTI.

During the April-January period of FY26, the country's industrial production growth also slowed slightly to 4 per cent, compared to 4.2 per cent in the same period a year ago.

The corresponding growth rates of IIP as per use-based classification in January 2026 over January 2025 are 3.1 per cent in primary goods, 4.3 per cent in capital goods, 6.0 per cent in intermediate goods, 13.7 per cent in infrastructure/ construction goods, 6.3 per cent in consumer durables and (-) 2.7 per cent in consumer non-durables.

Based on use-based classification, top three positive contributors to the growth of IIP for the month of January 2026 are infrastructure/ construction goods, intermediate goods and primary goods. Within the manufacturing sector, 14 out of 23 industry groups have recorded a positive growth in January 2026 over January 2025, PTI report stated.

The top three positive contributors for January 2026 are: manufacture of basic metals (13.2 per cent), manufacture of motor vehicles, trailers and semi-trailers (10.9 per cent) and manufacture of other non-metallic mineral products (9.9 per cent). (With Agency Inputs)