Key Highlights
- The IIP rose 5.0% in January 2025, outpacing the 3.2% rise recorded in December 2024.
- Manufacturing posted the strongest sectoral gain at 5.5%, with mining and electricity growing 4.4% and 2.4% respectively.
- Within manufacturing, basic metals, coke & refined petroleum products, and electrical equipment were the top three contributors.
- Use‑based categories showed robust expansion, especially capital goods (7.8%) and infrastructure/construction goods (7.0%).
Detailed Insights
The Ministry of Statistics and Programme Implementation (MoSPI) released a quick‑estimate of the Index of Industrial Production (IIP) for January 2025 on 12 March 2025. The composite index advanced to 161.3 from 153.6 in the same month a year earlier, signaling an acceleration in industrial activity. Manufacturing emerged as the engine of growth, registering a 5.5% increase and lifting the overall IIP. Mining followed with a 4.4% rise, while the electricity sector contributed 2.4%.
At the two‑digit NIC level, 19 out of 23 manufacturing sub‑industries recorded positive momentum. The most vigorous performers were:
- Basic metals – 6.3% growth, driven by flat alloy‑steel products, steel pipes, and billets.
- Coke & refined petroleum products – 8.5% growth, underpinned by higher output of diesel, petrol and LPG.
- Electrical equipment – 21.7% growth, reflecting strong output of small transformers, optical‑fiber connectors and electric heaters.
When grouped by end‑use, primary goods, capital goods, intermediate goods, infrastructure/construction goods and consumer durables all expanded, the sole laggard being consumer non‑durables, which slipped 0.2%.
Key Concepts
- Index of Industrial Production (IIP): A weighted aggregate index that captures output variations across manufacturing, mining and electricity.
- Quick Estimate: A provisional figure released before the final, fully‑revised data become available.
- Use‑based Classification: Segmentation of industrial output according to its intended application, e.g., capital goods or consumer durables.
- NIC (National Industrial Classification): The statistical coding system used to categorize manufacturing activities in India.