In January, India's index of industrial production exhibited a robust increase of 5.0% year-on-year, according to data released by the National Statistics Office (NSO). This marks an acceleration from the 3.2% growth recorded in December. Examining individual sectors reveals that mining output in January expanded by 4.4%, manufacturing saw a significant rise of 5.5%, and electricity generation increased by 2.4%.
Among the 23 industrial sub-sectors assessed, 19 experienced positive growth in January, illustrating a broadly favorable industrial landscape. Notably, the output of basic metals, a substantial sub-sector, grew by 6.3% year-on-year. Furthermore, the production levels of coke and refined petroleum products experienced an impressive increase of 8.5% over the same period.
The manufacturing sector for electrical equipment recorded a staggering growth rate of 21.7%, while the output of specific transport equipment types surged by 20.4%. When categorized by end use, primary goods production increased by 5.5%, while capital goods output rose significantly by 7.8%. There was also a commendable 5.2% boost in the production of intermediate goods.
Additionally, infrastructure-construction goods saw a 7% year-on-year increase in January. In terms of consumer goods, the output of consumer durables rose 7.2%, contrasting with a modest decline of 0.2% in the production of non-durables. The overall outlook for India’s industrial sector remains optimistic, particularly if recent government economic forecasts hold true.
During a policy meeting in February, the Reserve Bank of India projected that India's gross domestic product (GDP) would grow by 6.7% year-on-year in the fiscal year 2025-2026, commencing on April 1..