India’s Industrial Activity Slows to Three-Month Low of 4.8% in January 2026
India's Index of Industrial Production (IIP) growth slowed to 4.8% in January 2026, down from a 26-month high of 8% in December 2025. This broad-based slowdown affected manufacturing, mining, and electricity sectors. The manufacturing sector, a key component of the index, saw its growth decelerate to 4.8% from 8.4% in the previous month. However, the infrastructure and construction goods sector showed resilience, with growth quickening to 13.7%, the highest since August 2023. Analysts attribute the overall slowdown to a high base effect and cooling consumer demand in specific segments.
Key Points
- The IIP growth rate dropped to 4.8% in January 2026, marking a three-month low for industrial activity.
- Manufacturing growth slowed significantly to 4.8% compared to 8.4% in December 2025.
- Infrastructure and construction goods were the only sectors showing accelerated growth, reaching 13.7%.
- The data was released by the Ministry of Statistics and Programme Implementation (MoSPI), reflecting a broad-based slowdown.
Exam Facts
- January 2026 IIP growth was 4.8%, down from 8% in December 2025.
- Infrastructure sector growth reached 13.7% in January 2026, the highest in nearly 2.5 years.
- MoSPI (Ministry of Statistics and Programme Implementation) is the nodal agency for releasing IIP data in India.
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