India’s industrial output rises 4.8% in January, misses estimates – Firstpost

India’s industrial output growth eased to 4.8 per cent year-on-year in January, slowing from a revised 8 per cent expansion in December and coming in below market expectations, official data showed on Monday.

According to the data released by the National Statistics Office, the Index of Industrial Production (IIP) rose 4.8 per cent in January 2026, compared with 5.2 per cent growth in January 2025.

Economists polled by Reuters had expected industrial output to expand by 6.5 per cent.

The IIP stood at 169.4 in January, up from 161.6 a year earlier.

Manufacturing, electricity support growth

Sector-wise, manufacturing, which carries over 77 per cent weight in the index, grew 4.8 per cent year-on-year in January. Mining output expanded 4.3 per cent, while electricity generation rose 5.1 per cent during the month.

In December, industrial growth had come in at a revised 8 per cent, reflecting a sequential moderation in January’s pace.

Within manufacturing, 14 out of 23 industry groups at the two-digit level of the National Industrial Classification recorded positive growth in January.

The top contributors were manufacture of basic metals, which grew 13.2 per cent; manufacture of motor vehicles, trailers and semi-trailers, up 10.9 per cent; and manufacture of other non-metallic mineral products, which rose 9.9 per cent.

Under the use-based classification, infrastructure and construction goods posted the strongest growth at 13.7 per cent year-on-year in January. Intermediate goods output rose 6 per cent, while capital goods — a proxy for investment activity — grew 4.3 per cent.

Primary goods expanded 3.1 per cent, while consumer durables output rose 6.3 per cent. However, consumer non-durables contracted 2.7 per cent, indicating some weakness in segments linked to mass consumption.

For the April–January period of FY26, industrial output grew 4 per cent compared with the corresponding period of the previous fiscal year.