India’s industrial production grew by 5.0% YoY in Jan-25 from 3.5% in Dec-24.
Download ReportQuantEco Research || Jan-25 IIP - At an 8-month high
Ongoing recovery in rural demand led by a healthy kharif outturn along with an anticipated pick-up in government capex spending would provide impetus for overall industrial activity. Going into FY26, industrial activity is likely to face counteracting forces. At one end, prioritization of growth by domestic policymakers will gain prominence from both the government and the RBI. At the other end is the highly uncertain global geopolitical and geoeconomic environment, with the likelihood of a negative impact on global trade, which in turn could drag global economic growth. From the perspective of industrial activity, variation in merchandise exports explain ~25% of the variation in headline IIP and is the second most important determinant after investments. India’s active engagement with US counterparts to find a middle path on the issue of rebalancing of tariffs and trade would be closely tracked for cues.