India’s factory floors and power plants powered ahead in January, pushing the Index of Industrial Production up 4.8 percent from a year earlier. The data, shared by the Ministry of Statistics on Monday, pegs the provisional IIP at 169.4 against January 2025’s 161.6.
The uptick stemmed from manufacturing’s 4.8 percent rise and electricity’s 5.1 percent jump, offsetting a weaker mining sector. Detailed breakdowns reveal mining at 157.2, manufacturing at 167.2, and electricity soaring to 212.1.
Diving into manufacturing sub-sectors under the two-digit NIC 2 classification, 14 of 23 groups grew. Standouts were basic metals (13.2 percent), motor vehicles and trailers (10.9 percent), and non-metallic mineral products (9.9 percent), collectively driving the sector’s performance.
From a usage perspective, primary goods indexed 167.9, capital goods 124.4—indicating tempered investment—intermediate goods 182.8, and infrastructure materials a hefty 227.7. Consumer durables rose to 138.2, non-durables to 160.7.
Contextually, this caps a strong quarter-end: December’s 7.8 percent IIP growth marked a two-year peak, with manufacturing up 8.1 percent across 16 of 23 groups, led by metals, autos, pharma, and chemicals. November’s 7.2 percent set the stage.
Analysts note this continuity bodes well for GDP projections, with manufacturing’s breadth signaling supply chain stabilization. Yet, capital goods’ restraint suggests businesses remain selective amid inflation pressures and global uncertainties. Looking ahead, February data will test if this vigor holds.