Index of Industrial Production (IIP) for Jan Shows 5.0% Growth
ECONOMY & POLICY

Index of Industrial Production (IIP) for Jan Shows 5.0% Growth

The Quick Estimates of the Index of Industrial Production (IIP) for January 2025 have been released, offering key insights into India’s industrial performance. The IIP, which tracks short-term fluctuations in industrial output, is published on the 12th of every month or the previous working day if the 12th is a holiday. Compiled with data received from source agencies that collect information from factories and industrial establishments, these estimates provide an initial assessment of industrial activity. As per the IIP revision policy, the figures are subject to revision in subsequent releases as more comprehensive data becomes available.

For January 2025, the IIP growth rate stood at 5.0%, reflecting an increase from the 3.2% recorded in December 2024. Sector-wise, mining registered a growth of 4.4%, manufacturing grew by 5.5%, and electricity production increased by 2.4%. The overall IIP index for January 2025 reached 161.3, compared to 153.6 in January 2024. Among the key sectors, the mining index stood at 150.7, the manufacturing index at 159.1, and the electricity index at 201.9, indicating steady growth across core industrial activities.

Within the manufacturing sector, 19 out of 23 industry groups at the NIC 2-digit level recorded positive growth in January 2025 compared to the previous year. The strongest contributors to this expansion were the manufacture of basic metals, which saw a growth of 6.3%, the manufacture of coke and refined petroleum products, which increased by 8.5%, and the manufacture of electrical equipment, which posted an impressive growth of 21.7%. In the basic metals category, significant contributions came from flat products of alloy steel, pipes and tubes of steel, and MS blooms, billets, ingots, and pencil ingots. The petroleum and refined products industry benefited from increased production of diesel, petrol/motor spirit, and liquefied petroleum gas (LPG). The electrical equipment sector saw notable growth in the production of small transformers, end-facing connectors for optical fibres and cables, and electric heaters.

Examining the IIP from a use-based classification perspective, the indices for January 2025 indicate continued industrial momentum. The index for primary goods stood at 162.8, reflecting a year-on-year growth of 5.5%, while capital goods recorded a growth of 7.8% with an index value of 116.8. Intermediate goods grew by 5.2% with an index of 172.3, while infrastructure and construction goods, a key driver of economic expansion, recorded a robust growth of 7.0%, bringing the index to 199.6. Consumer durables performed strongly with a growth rate of 7.2% and an index of 130.2, whereas consumer non-durables showed a marginal contraction of 0.2%, with an index of 164.5.

The industrial outlook for January 2025 remains positive, driven by strong performance in the manufacturing and mining sectors. Increased production in key areas such as basic metals, petroleum products, and electrical equipment points to rising demand across core industries. Growth in infrastructure and capital goods sectors further highlights ongoing economic development and investment in industrial expansion. As the IIP figures continue to be refined in subsequent revisions, they will provide a clearer picture of India’s industrial growth trajectory in the coming months.

The Quick Estimates of the Index of Industrial Production (IIP) for January 2025 have been released, offering key insights into India’s industrial performance. The IIP, which tracks short-term fluctuations in industrial output, is published on the 12th of every month or the previous working day if the 12th is a holiday. Compiled with data received from source agencies that collect information from factories and industrial establishments, these estimates provide an initial assessment of industrial activity. As per the IIP revision policy, the figures are subject to revision in subsequent releases as more comprehensive data becomes available. For January 2025, the IIP growth rate stood at 5.0%, reflecting an increase from the 3.2% recorded in December 2024. Sector-wise, mining registered a growth of 4.4%, manufacturing grew by 5.5%, and electricity production increased by 2.4%. The overall IIP index for January 2025 reached 161.3, compared to 153.6 in January 2024. Among the key sectors, the mining index stood at 150.7, the manufacturing index at 159.1, and the electricity index at 201.9, indicating steady growth across core industrial activities. Within the manufacturing sector, 19 out of 23 industry groups at the NIC 2-digit level recorded positive growth in January 2025 compared to the previous year. The strongest contributors to this expansion were the manufacture of basic metals, which saw a growth of 6.3%, the manufacture of coke and refined petroleum products, which increased by 8.5%, and the manufacture of electrical equipment, which posted an impressive growth of 21.7%. In the basic metals category, significant contributions came from flat products of alloy steel, pipes and tubes of steel, and MS blooms, billets, ingots, and pencil ingots. The petroleum and refined products industry benefited from increased production of diesel, petrol/motor spirit, and liquefied petroleum gas (LPG). The electrical equipment sector saw notable growth in the production of small transformers, end-facing connectors for optical fibres and cables, and electric heaters. Examining the IIP from a use-based classification perspective, the indices for January 2025 indicate continued industrial momentum. The index for primary goods stood at 162.8, reflecting a year-on-year growth of 5.5%, while capital goods recorded a growth of 7.8% with an index value of 116.8. Intermediate goods grew by 5.2% with an index of 172.3, while infrastructure and construction goods, a key driver of economic expansion, recorded a robust growth of 7.0%, bringing the index to 199.6. Consumer durables performed strongly with a growth rate of 7.2% and an index of 130.2, whereas consumer non-durables showed a marginal contraction of 0.2%, with an index of 164.5. The industrial outlook for January 2025 remains positive, driven by strong performance in the manufacturing and mining sectors. Increased production in key areas such as basic metals, petroleum products, and electrical equipment points to rising demand across core industries. Growth in infrastructure and capital goods sectors further highlights ongoing economic development and investment in industrial expansion. As the IIP figures continue to be refined in subsequent revisions, they will provide a clearer picture of India’s industrial growth trajectory in the coming months.

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