India Industrial Production Slows

Industrial production in India rose by 4.8% from the previous year in January of 2026, slowing from the upwardly revised, two-year high 8% increase in the previous month and contrasting with expectations of a sharper increase of 6.5%. Manufacturing output, which makes up nearly 80% of the national industrial production, also expanded by 4.8% from the 8.4% increase in December, supported by the manufacture of motor vehicles (10.9%), machinery and equipment (6.2%), and basic metals (13.2%). In the meantime, mining output rose by 4.3% and utility generation rose by 5.1%.

The industrial production in India rose by 7.9% from the previous year in December of 2025, picking up from the upwardly revised 7.2% advance in the earlier month and above market expectations of a 5.5% rise to mark the sharpest pace of growth since October of 2023. The robust growth pace pushed back against concerns that aggressive tariff hikes by the US government would drive a sustained slowdown in the Indian economy, especially as goods producers are likely paying for more expensive fuel after the US tariffed major Russian oil producers and distributors. Output remained high for manufacturing (8.1% vs 8.5% in November), which is responsible for over 77% of total industrial production. Output also expanded for mining (6.8% vs 5.8%) and electricity generation (6.3% vs -1.5%).

The industrial production in India grew 6.7% from the previous year in November of 2025, accelerating from the upwardly revised 0.5% increase in the previous month, to mark the sharpest pace of expansion since October of 2023. The robust growth pace pushed back against concerns that aggressive tariff hikes by the US government would drive a sustained slowdown in the Indian economy, especially as goods producers are likely paying for more expensive fuel after the US tariffed major Russian oil producers and distributors. Growth was noted in manufacturing (8% vs 2% in October) on higher output of basic and fabricated metal products, pharmaceuticals, and motor vehicles. Growth was also sharp for mining (5.4% vs -1.8%) as the closure of the monsoon season supported operations. On the other hand, electricity output fell for a second month (-1.5% vs -6.9%).