India’s industrial production recorded a 5 per cent growth in January, showing an improvement from the 3.5 per cent increase seen in December 2024.
The latest data, released by the Ministry of Statistics and Programme Implementation (MoSPI), highlights a steady recovery in the manufacturing and infrastructure sectors.
The Index of Industrial Production (IIP), which measures overall industrial output, showed a notable rise, primarily driven by an increase in manufacturing output.
According to the National Statistical Office (NSO), the manufacturing sector registered a growth of 5.5 per cent in January, up from 3.6 per cent in the same period last year.
This expansion signals resilience in the sector despite global economic uncertainties.
However, the mining sector witnessed a slight decline, growing at 4.4 per cent in January compared to a 6 per cent growth in the same month last year.
Meanwhile, power generation increased by only 2.4 per cent, reflecting a relatively slower pace of expansion in the energy sector.
From April 2024 to January 2025, industrial production saw a 4.2 per cent rise, which is lower than the 6 per cent growth recorded during the corresponding period a year ago.
The data suggests a moderate pace of recovery in industrial activity, influenced by fluctuations across various sectors.
According to use-based classification, the capital goods segment showed strong performance, expanding by 7.8 per cent in January, compared to 3.2 per cent in the same month last year.
This indicates higher investment in machinery and equipment, which could boost future production capacities.
Consumer durable goods output grew by 7.2 per cent in January, although this was lower than the 11.6 per cent growth recorded in the same period last year.
On the other hand, the non-durable consumer goods segment saw a marginal decline of 0.2 per cent, after recording a 0.3 per cent increase in January 2024.
Infrastructure and construction-related goods witnessed a 7 per cent growth in January, slightly higher than the 5.5 per cent expansion recorded in the previous year.
The output of primary goods also increased significantly, growing by 5.5 per cent in January compared to 2.9 per cent in the same period last year.
The core sector, which accounts for 40.27 per cent of the IIP, plays a crucial role in indicating overall industrial activity. The latest figures suggest a steady yet cautious expansion in India’s industrial landscape, with key sectors showing mixed performance.
While manufacturing and capital goods continue to drive growth, slower momentum in mining and power generation indicates lingering challenges.
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