Data Alert
India's IIP growth rises to 5.0% in Jan from 3.5% in Dec
This story was originally published at 17:41 IST on 12 March 2025
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--India Jan IIP growth 5.0% vs 4.2% year ago
--Informist poll estimated Jan IIP growth at 3.5%
--India Dec IIP growth revised to 3.5% vs 3.2% provisional
--India Apr-Jan IIP growth 4.2% vs 6.0% year ago
--India Jan mining sector growth 4.4% vs 6.0% year ago
--India Jan manufacturing sector growth 5.5% vs 3.6% year ago
--India Jan electricity sector growth 2.4% vs 5.6% year ago
--India Jan primary goods output growth 5.5% vs 2.9% year ago
--India Jan capital goods output growth 7.8% vs 3.2% year ago
--India Jan intermediate goods output growth 5.2% vs 5.3% year ago
--India Jan infrastructure goods output growth 7.0% vs 5.5% year ago
--India Jan consumer durables output growth 7.2% vs 11.6% year ago
--India Jan consumer non-durables output growth -0.2% vs 0.3% year ago
NEW DELHI - India's industrial output grew at a faster clip in January, with the Index of Industrial Production rising by 5.0%, up from December's revised figure of 3.5%, data released by the statistics ministry Wednesday showed. The provisional estimate for growth in December was 3.2%. Industrial output had risen by 4.2% in the first month of 2024.
At 5.0%, the latest IIP growth print is well above expectations. According to an Informist poll, industrial growth in January was seen edging up to 3.5%. For Apr-Jan, India's industrial output was up 4.2% compared to the 6.0% recorded in the first 10 months of 2023-24 (Apr-Mar).
The quicker expansion in industrial production in January was driven by the manufacturing sector, whose output rose 5.5% year-on-year, up from 3.4% in December. At 5.5%, the growth in manufacturing output in January is the joint-fastest in 10 months. The last time it grew at a faster rate was in March last year, when it posted an increase of 5.9%.
To be sure, the rise in manufacturing output growth in January was aided by a favourable base, with the index in January 2024 down 0.5% month-on-month. However, production in the first month of 2025 showed positive momentum, with the index up 1.5% from December.
Mining output growth also increased in January, coming in at 4.4% as against 2.7% in December. Meanwhile, electricity production rose only 2.4%, down from 6.2% in December, dragged down by a hugely unfavourable base. The index for electricity had jumped 8.5% month-on-month in January 2024.
Within the use-based classification, the numbers were similarly mixed, with two of the six categories of goods seeing better production performance in January than December on a year-on-year basis. While primary goods output growth rose to a six-month high of 5.5% in January, the production of consumer non-durables shrunk by 0.2%--a vast improvement from the 7.5?ll seen in December. However, this was primarily due to a favourable base, with output of consumer non-durables down 1.1% on a sequential basis.
Although the output growth for the other four categories of goods was weaker in January than December, they were respectable, with production of consumer durables up 7.2%. In December, it had grown by 8.3%. Similarly, output growth for capital goods (7.8% in January versus 10.4% in December), intermediate goods (5.2% versus 6.4%), and infrastructure goods (7.0% versus 7.4%) was also lower from the previous month.
"A sustained and broad-based improvement in consumption remains critical, especially given the context of trailing urban demand," said Rajani Sinha, chief economist at CareEdge, adding that a sustained easing of inflationary pressures, interest rate cuts by the Reserve Bank of India, and lower income tax burden "remain the tailwinds for consumption recovery".
"The improvement in consumption demand remains critical also from the standpoint of boosting the investment scenario. Moreover, infrastructure/construction and capital goods have logged a strong performance, with a 7% and 7.8% growth, respectively in January. Improving public capex also bodes well for the performance in these categories," Sinha further said.
The following tables detail year-on-year changes in industrial output in January:
| Janury 2025 | December 2024 | January 2024 | |
| General | 5.0% | 3.5% | 4.2% |
| Mining | 4.4% | 2.7% | 6.0% |
| Manufacturing | 5.5% | 3.4% | 3.6% |
| Electricity | 2.4% | 6.2% | 5.6% |
| Primary goods | 5.5% | 3.8% | 2.9% |
| Capital goods | 7.8% | 10.4% | 3.2% |
| Intermediate goods | 5.2% | 6.4% | 5.3% |
| Infrastructure/construction goods | 7.0% | 7.4% | 5.5% |
| Consumer durables | 7.2% | 8.3% | 11.6% |
| Consumer non-durables | (-)0.2% | (-)7.5% | 0.3% |
| Mining | Electricity | Manufacturing | General | |||||
| FY25 | FY24 | FY25 | FY24 | FY25 | FY24 | FY25 | FY24 | |
| April | 6.8% | 5.1% | 10.2% | (-)1.1% | 4.2% | 5.5% | 5.2% | 4.6% |
| May | 6.6% | 6.4% | 13.7% | 0.9% | 5.1% | 6.3% | 6.3% | 5.7% |
| June | 10.3% | 7.6% | 8.6% | 4.2% | 3.5% | 3.5% | 4.9% | 4.0% |
| July | 3.8% | 10.7% | 7.9% | 8.0% | 4.7% | 5.3% | 5.0% | 6.2% |
| August | (-)4.3% | 12.3% | (-)3.7% | 15.3% | 1.2% | 10.0% | 0.0% | 10.9% |
| September | 0.2% | 11.5% | 0.5% | 9.9% | 4.0% | 5.1% | 3.2% | 6.4% |
| October | 0.9% | 13.1% | 2.0% | 20.4% | 4.4% | 10.6% | 3.7% | 11.9% |
| November | 1.9% | 7.0% | 4.4% | 5.8% | 5.5% | 1.3% | 5.0% | 2.5% |
| December | 2.7% | 5.2% | 6.2% | 1.2% | 3.4% | 4.6% | 3.5% | 4.4% |
| January | 4.4% | 6.0% | 2.4% | 5.6% | 5.5% | 3.6% | 5.0% | 4.2% |
| February | 8.1% | 7.6% | 4.9% | 5.6% | ||||
| March | 1.3% | 8.6% | 5.9% | 5.5% | ||||
| Mining | Manufacturing | Electricity | General | |
| Apr-Jan FY25 | 3.4% | 4.2% | 5.1% | 4.2% |
| FY24 | 7.5% | 5.5% | 7.1% | 5.9% |
| FY23 | 5.8% | 4.7% | 8.9% | 5.2% |
| FY22 | 12.2% | 11.8% | 7.9% | 11.4% |
| FY21 | (-)7.8% | (-)9.6% | (-)0.5% | (-)8.4% |
| FY20 | 1.6% | (-)1.4% | 1.0% | (-)0.8% |
| FY19 | 2.9% | 3.9% | 5.2% | 3.8% |
| FY18 | 2.3% | 4.6% | 5.4% | 4.4% |
| FY17 | 5.3% | 4.4% | 5.8% | 4.6% |
| FY16 | 4.3% | 2.8% | 5.7% | 3.3% |
| FY15 | (-)1.4% | 3.8% | 14.8% | 4.0% |
| FY14 | (-)0.1% | 3.6% | 6.1% | 3.3% |
| FY13 | (-)5.3% | 4.8% | 4.0% | 3.3% |
Source: Ministry of Statistics and Programme Implementation
End
Reported by Siddharth Upasani
Edited by Vandana Hingorani
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