New Delhi’s industrial landscape showed resilience in January as the Index of Industrial Production (IIP) climbed 4.8 percent year-on-year, driven primarily by robust gains in manufacturing and electricity sectors. The Ministry of Statistics and Programme Implementation released these figures on Monday, highlighting a quick estimate of IIP at 169.4, up from 161.6 in the same month last year.
Manufacturing led the charge with a matching 4.8 percent growth, while electricity generation surged 5.1 percent. Mining, however, lagged with a modest 3.2 percent increase. Sector-wise indices stood at 157.2 for mining, 167.2 for manufacturing, and a strong 212.1 for electricity.
Within manufacturing, classified under NIC 2’s two-digit level, 14 out of 23 industry groups posted positive growth. Top performers included basic metals at 13.2 percent, motor vehicles, trailers, and semi-trailers at 10.9 percent, and other non-metallic mineral products at 9.9 percent. These sectors provided the heaviest lift to overall output.
Use-based classification painted a mixed picture. Primary goods index reached 167.9, capital goods 124.4, intermediate goods 182.8, and infrastructure and construction materials a robust 227.7. Consumer durables stood at 138.2, while non-durables hit 160.7.
This follows a stellar December where IIP grew 7.8 percent—the highest in over two years—fueled by broad-based strength across manufacturing (8.1 percent), mining, and electricity. November had seen 7.2 percent growth, marking back-to-back months of strong performance.
In December, 16 of 23 manufacturing groups expanded, with basic metals, motor vehicles, pharmaceuticals, and chemicals at the forefront. Economists view this sustained momentum as a positive signal for India’s post-pandemic recovery, though capital goods’ slower pace hints at investment caution. As global headwinds persist, these numbers underscore domestic manufacturing’s pivotal role in sustaining growth.