IIP Growth Cools to 4.8% in January 2026
Why in the news
Industrial output lost pace in January 2026, with manufacturing, mining and electricity all slowing after a strong December.
Key facts
- Overall IIP: 4.8%, a three-month low; December was a 26-month high.
- Manufacturing has the largest weight and was the main drag.
- Infrastructure: 13.7% growth, best since August 2023, reflecting public capital spending.
| Sector | Jan 2026 | Dec 2025 | Jan 2025 |
|---|---|---|---|
| Manufacturing | 4.8% | 8.4% | 5.8% |
| Mining | 4.3% | Not given | Not given |
| Electricity | 5.1% | 6.9% | 2.4% |
| Infrastructure | 13.7% | Not given | Not given |
About IIP
The Index of Industrial Production tracks industrial sectors such as manufacturing, mining and electricity, and works as a quick pointer to industrial activity.
Concerns
- All major sectors except infrastructure slowed.
- Weak consumer non-durables hints at consumption stress.
- Slower capital goods growth may dent private investment sentiment.
Exam angle
- Highest-weight IIP component: manufacturing.
- Infrastructure growth: 13.7%.
- December 2025 reading: 26-month high.