Growth in India’s industrial production moderated to 4.8% YoY in Jan-26 from 8.0% in Dec-25
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Growth in India’s industrial production moderated to 4.8% YoY in Jan-26 from 8.0% in Dec-25. The deceleration was broad-based. However, Infrastructure & Construction Goods maintained its strong outperformance, backed by public capex spend. The revamped GDP/GVA data series enhances the coverage and estimation of industrial activity. Encouragingly, the recent trend depicts an upward revision to GVA Industry. Going forward, the prevailing geoeconomic uncertainty and sharp worsening of geopolitical risks could weigh upon sentiment. The internal growth impulses, in the form of lower lending rates, tax-based support to private consumption, and continued prioritization of public capex would help to mitigate the global risks. Having said, one needs to keep a close watch on international commodity prices and INR, both of which could work towards reducing the manufacturing value-add in FY27.