Manufacturing drives industrial output growth to 5% in January

According to the National Statistics Office, projected data of India's industrial production is moving towards 5 percent in January 2025, up from 3.2 percent in December 2024, driven by strong growth in manufacturing.  The data for January 2025 reflects the large industries improvement and expansion over the period.  Factory production, evaluated based on the index of industrial production (IIP), recorded a growth of 4.2 percent in January 2024.

Manufacturing, accounting for 77.66 percent of the IIP, experienced a 5.5 percent increase in January compared to the 3.6 percent growth observed in the corresponding month of the previous year. In December 2024, the growth rate of manufacturing output was 3.4%. Cumulative growth in manufacturing production during the April-January timeframe of the current fiscal year reached 4.2 percent, aligning with the overall IIP growth. Primary goods and consumer durables primarily drove the increase. The growth rate in primary goods output rose to 5.5 percent in January from 3.8 percent in December. It was fueled by mining and petroleum products. The intermediate goods increased by 5.23%, and the primary goods grew by 5.5% which is enhancing manufacturing facility.

The output of consumer non-durable products in January was reduced compared to last year. However, the decline is slowed by 0.2 percent in January from 7. 5% in the previous month.  “The rise in consumer durables signals improving consumer confidence and economic resilience,” Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India, said in a note.