India's Industrial Production Grows by 2.9 Percent in February
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Synopsis
India's industrial production, as indicated by the Index of Industrial Production, achieved a notable 2.9 percent growth in February compared to the same month last year, according to the Ministry of Statistics. This growth reflects positive trends across sectors, including manufacturing, mining, and electricity generation.
Key Takeaways
- India's industrial output grew by 2.9 percent in February.
- The manufacturing sector showed a 2.9 percent growth.
- Mining production increased by 1.6 percent.
- Electricity production rose by 3.6 percent.
- Capital goods production surged by 8.2 percent.
New Delhi, April 11 (NationPress) India's industrial production, determined by the Index of Industrial Production (IIP), achieved a 2.9 percent growth in February this year compared to the same month last year, as per data released by the Ministry of Statistics on Friday.
The statistics indicated that the manufacturing sector, which generates quality employment for the country’s young graduates from universities and engineering institutes, experienced a 2.9 percent growth in February compared to February last year.
Mining production saw a growth of 1.6 percent during the month, while electricity production rose by 3.6 percent.
Within the manufacturing sector, 14 out of 23 industry categories reported positive growth in February 2025 compared to February 2024. The three leading contributors for February 2025 are – “Manufacture of basic metals” (5.8 percent), “manufacture of motor vehicles, trailers and semi-trailers” (8.9 percent), and “Manufacture of other non-metallic mineral products” (8.0 percent).
In the industry group “Manufacture of basic metals”, item groups such as “Flat products of Alloy Steel”, “Pipes and tubes of Steel”, and “Bars and Rods of Mild steel” have significantly contributed to growth.
Likewise, in the group “Manufacture of motor vehicles, trailers and semi-trailers”, item groups such as “Auto components/spares and accessories”, “Axle”, and “Commercial Vehicles” have made notable contributions to growth.
The classification based on usage indicates that the production of capital goods, which includes machinery utilized in factories, rose by 8.2 percent in February. This segment reflects genuine investment trends in the economy, which have a multiplier effect on job and income creation.
Additionally, there was a 3.8 percent increase in the production of consumer durables like electronic devices, refrigerators, and TVs, indicating higher consumer demand for these products amidst increasing incomes.
ICRA chief economist Aditi Nayar noted that the growth rate in February was slower than the 5 percent recorded in January due to the base effect. The performance of most available high-frequency indicators improved in March 2025, including electricity generation and mobility-related indicators such as GST e-way bill generation, port cargo traffic, diesel consumption, petrol consumption, and vehicle registrations. While steel consumption declined in March 2025, this was mitigated by a high base, she added.
