Economic Momentum Experiences Steady Expansion in January, Index Hits 51.2

India's Economic Momentum Remains Stable in January 2026

The Moneycontrol Economy Pulse reading for January 2026 came in at 51.2, down from 51.4 in December 2025. This indicates that economic activity continues to expand, albeit at a slower pace, despite evolving domestic and global conditions.

High-frequency indicators for January 2026 show mixed but broadly stable trends across sectors. Consumption-linked indicators, such as sales of two-wheelers and tractors, outperformed last month's numbers, demonstrating rural resilience. However, car sales growth slowed, and demand for diesel also decreased.

On the industrial side, while PMI data showed improvement, indicating stronger business activity conditions, diesel consumption, electricity demand, and e-way bill generation all slowed during the month. Exports expanded just 0.6% year-over-year in January, while major ports' cargo handling witnessed an easing.

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Jobs data was not encouraging, with both urban unemployment and youth unemployment rising in January. The December number was revised downwards due to data revisions and the addition of new indicators.

The Indian economy grew 8% in the first half of the year, but the numbers are due for revision in the upcoming release on February 27. The government will announce fiscal third-quarter and full-year estimates for FY26 under the new GDP series with a 2022-23 base, with revisions to previous years' forecasts as well.

The Moneycontrol Eco Pulse now incorporates close to 40 indicators, including diesel consumption, unemployment rate, female labour force participation, and youth unemployment, which are new additions to the index.