New Delhi, Mar 02: The Index of Industrial Production (IIP) recorded a steady growth of 4.8% in January 2026, reflecting broad-based industrial activity and continued momentum in India’s manufacturing sector. According to Mr. Rajeev Juneja, President, PHDCCI, this growth was primarily driven by manufacturing sector growth of 4.8% and a 5.1% increase in electricity output, underscoring the robustness of industrial expansion.
Mr. Juneja highlighted,
“Recent data on industrial production indicate that India’s manufacturing sector continues to remain a key driver of overall industrial growth. Steady expansion in manufacturing and electricity output were key factors supporting the increase in IIP numbers. The fact that a majority of manufacturing industry groups registered positive growth reflects broad-based industrial activity and sustained momentum supporting stable IIP numbers.”
At the two-digit NIC level, 14 out of 23 manufacturing industry groups reported positive growth compared to January 2025. The top three contributors were:
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Manufacture of basic metals – 13.2%
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Manufacture of motor vehicles, trailers and semi-trailers – 10.9%
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Manufacture of other non-metallic mineral products – 9.9%
On a use-based classification, infrastructure and construction goods witnessed a remarkable growth of 13.7%, emerging as the leading contributor to IIP growth.
Commenting on the outlook, Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI, said,
“Looking ahead, the growth momentum in the industrial sector will depend on domestic consumption and infrastructure demand. However, given the recent geopolitical tensions in the Middle East, it is important that we continue to build on our manufacturing competitiveness to keep the growth momentum going.”
The data reflects India’s manufacturing and electricity sectors as resilient pillars driving industrial growth and demonstrates the importance of policy support, infrastructure development, and competitive manufacturing practices in sustaining momentum.
