Prime Highlights

• India’s industrial output grew 5.2 per cent in February, driven largely by a 6 per cent rise in manufacturing.
• Capital goods and infrastructure sectors posted strong double-digit gains, reflecting steady investment activity.

Key Facts

• Mining output improved to 3.1 per cent in February, while power generation growth slowed to 2.3 per cent.
• For April to February of FY26, overall industrial production growth held steady at 4.1 per cent year-on-year.

Background

The manufacturing sector is playing a key role in India’s steady growth of the industrial sector. National Statistics Office’s data shows that the Index of Industrial Production increased by 5.2 per cent in February. This is a clear improvement compared to the 2.7 per cent growth recorded in the same month last year.

Factory output rose compared to last year, keeping industrial production on track. The manufacturing sector, which carries the highest weight in the IIP, grew by 6 per cent in February against 2.8 per cent a year ago. Capital goods and infrastructure sectors also did well, pointing to continued investment in core industries. Capital goods recorded a sharp 12.5 per cent rise, while infrastructure and construction goods grew by 11.2 per cent.

Mining output also improved, rising to 3.1 per cent from 1.6 per cent in February last year. Power generation, however, slowed to 2.3 per cent compared to 3.6 per cent during the same period previously.

Growth has not been uniform across all industries. Spending on everyday consumer goods saw a slight decline, suggesting that buyers are being cautious with their expenses. Strong export demand, however, helped make up for this and kept industrial activity on track.

For the April to February period of the current financial year, overall industrial production growth held at 4.1 per cent year-on-year.

Experts are being careful in their outlook for the coming months. Analysts believe growth may slow down in March due to global uncertainties, such as supply issues and higher production costs linked to the ongoing West Asia crisis.

Overall, the figures for February show that the industrial sector remains strong and steady. However, changing global challenges may put this stability to the test in the months ahead.