India's factory output weakens to 4.8% in January

India's factory output weakens to 4.8% in January

India's industrial output grew by 4.8% year-on-year in January, slowing down from the 7.8% growth rate recorded in December 2025.

The data was released by the Ministry of Statistics and Programme Implementation on Monday.

The Index of Industrial Production (IIP) was buoyed by steady growth in manufacturing and electricity generation at 4.8% and 5.1%, respectively, while mining output rose by a modest 4.3%.

Manufacturing sector shows mixed performance

In the manufacturing sector, 14 out of 23 industry groups posted positive growth.

Basic metals led the pack with a 13.2% increase, followed by motor vehicles at 10.9% and other non-metallic mineral products at an impressive 9.9%.

This indicates strong performance in steel, cement and auto-related sectors.

However, consumer non-durables such as soaps, medicines and cosmetics contracted by 2.7%, indicating uneven demand conditions across sectors.

Capital goods and consumer durables segments experience steady growth

The capital goods segment, a key indicator of investment in the economy, grew by 4.3% in January. This is a significant drop from the 10.2% growth recorded last year during the same period.

Consumer durables such as televisions and refrigerators also showed steady growth at 6.3%, albeit slightly lower than last year's expansion rate of 7.1%.

These figures suggest a mixed bag for India's industrial output in January amid varying sectoral performances and consumer spending patterns.

CEA projects India's economy to grow at around 7.3%

Chief Economic Advisor V Anantha Nageswaran has projected India's economy to grow at around 7.3% in the March quarter.

This is crucial for achieving the projected 7.6% growth rate for the entire financial year, as per second advance estimates released under a new GDP series with 2022-23 as base year.

The Union Budget focused heavily on manufacturing, mining, exports, and technology-intensive labor-heavy sectors to sustain this growth momentum despite external uncertainties.