India's industrial output rose 5.2% YoY in February 2026, driven by a 6% manufacturing expansion. Mining grew 3.1% and electricity 2.3%. Capital goods showed robust 12.5% growth, but consumer non-durables contracted by 0.6%.
The Index of Industrial Production (IIP) recorded a 5.2 per cent year-on-year (YoY) growth in February 2026, supported by a 6 per cent expansion in the manufacturing sector.
The Ministry of Statistics & Programme Implementation, on Monday, highlighted a steady climb in industrial activity compared to the 4.8 per cent growth seen in January 2026. The overall Quick Estimate of the IIP reached 159 for the month, rising from 151.1 in February 2025.
The growth remained visible across the primary segments, with the mining sector recording an increase of 3.1 per cent and the electricity sector growing by 2.3 per cent. The specific indices for these sectors stood at 146.3 for mining, 157.3 for manufacturing, and 198.4 for electricity.
The performance suggested a recovery trend despite broader economic complexities that influenced production cycles earlier in the year.
PHDCCI on Industrial Momentum
"The improvement in industrial production reflects strengthening momentum in capital-intensive sectors, particularly infrastructure and manufacturing. Further, sustained expansion in capital goods signals improving private investment activity, a critical element for medium-term growth," said Rajeev Juneja, President, PHDCCI.
Detailed Manufacturing Sector Breakdown
Within the manufacturing landscape, 14 out of 23 industry groups under the National Industrial Classification recorded positive growth during the month.
The manufacture of basic metals saw a 13.2 per cent rise, driven largely by contributions from MS slabs, flat products of alloy steel, and steel pipes.
The manufacture of motor vehicles, trailers, and semi-trailers posted a significant 14.9 per cent growth, fueled by the production of commercial vehicles, auto components, and rims.
Additionally, the machinery and equipment segment grew by 10.2 per cent, supported by the output of agricultural tractors and internal combustion engines.
Performance by Use-Based Classification
The use-based classification of the data highlighted a robust performance in the capital goods sector, which expanded by 12.5 per cent. Infrastructure and construction goods followed with an 11.2 per cent growth rate, while intermediate goods rose by 7.7 per cent. Primary goods recorded a modest 1.8 per cent increase, and consumer durables grew by 7.3 per cent. However, consumer non-durables remained a point of concern, recording a contraction of 0.6 per cent during the period.
Expert Outlook and Concerns
"The important element of growth is the broad-based performance across 14 manufacturing segments, which indicates resilience in industrial demand. However, the contraction in consumer non-durables suggests uneven consumption recovery and requires continued policy attention," Juneja added.
Commenting on the outlook, Ranjeet Mehta, SG & CEO, PHDCCI, noted that the data pointed toward a strengthening production cycle. "IIP data points to a gradually strengthening industrial production cycle, with infrastructure, intermediate, and capital goods expected to remain key drivers in the short-term. Continued easing of supply-side constraints hold the key to support this growth momentum," he said.
Data Revisions and Next Release
The Ministry confirmed that these figures remained subject to revision, with the February estimates compiled at a weighted response rate of 88.64 per cent.
Release of the Index for March 2026 will be on Tuesday, 28th April 2026. (ANI)
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