India’s industrial output growth slows to 4.8% in January, misses estimates

India’s industrial output growth eased to a three-month low of 4.8 per cent in January, dragged down by slower manufacturing activity and a contraction in fast-moving consumer goods production, 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 year-on-year in January 2026, lower than the revised 8 per cent growth recorded in December. Economists polled by Reuters had expected a 6.5 per cent expansion.

The moderation marks the slowest pace of growth in three months and signals some loss of momentum in the industrial sector at the start of the calendar year.

Manufacturing slows

Manufacturing, which accounts for nearly 78 per cent of the index, grew 4.8 per cent in January, sharply lower than the revised 8.4 per cent rise in December.

Electricity generation increased 5.1 per cent year-on-year in January, compared with a 6.3 per cent expansion in the previous month. Mining output rose 4.3 per cent, easing from a revised 6.9 per cent increase in December.

Under the use-based classification, capital goods output — a proxy for investment demand — rose 4.3 per cent in January, down from a revised 8.3 per cent growth a month earlier.

Consumer durables production, which includes items such as cars and mobile phones, grew 6.3 per cent year-on-year, slowing from a revised 12.4 per cent in December.

However, consumer non-durables output — comprising food products and toiletries — contracted 2.7 per cent in January, reversing a revised 8.5 per cent expansion in the previous month, indicating weakness in mass consumption segments.

Infrastructure goods remain strong

Infrastructure and construction goods continued to post robust growth, expanding 13.7 per cent year-on-year in January, while intermediate goods output rose 6 per cent.

For the April–January period of FY26, industrial output grew 4 per cent, compared with 4.2 per cent growth in the corresponding period of the previous financial year.