India’s industrial growth rises to 5.2% in February from 4.8% in January

India’s industrial output accelerated in February 2026, with the Index of Industrial Production (IIP) expanding 5.2 per cent year-on-year, up from 4.8 per cent in January, according to government data released on March 30. The uptick was driven primarily by stronger manufacturing performance, even as mining and electricity recorded more modest gains.

The manufacturing sector grew 6.0 per cent in February, compared with steady but slower gains in the other core segments. Mining output rose 3.1 percent, while electricity generation increased 2.3 per cent during the month.

In absolute terms, the IIP stood at 159.0 in February 2026, higher than 151.1 in the same month last year, indicating continued expansion in industrial activity.

Manufacturing remains key driver

Within manufacturing, 14 of the 23 industry groups at the two-digit NIC level recorded positive growth in February, reflecting a stable but slightly concentrated expansion.

The top contributors included basic metals, which grew 13.2 per cent, motor vehicles, trailers and semi-trailers, which rose 14.9 per cent, and machinery and equipment (n.e.c.), which expanded 10.2 per cent.

Growth in basic metals was supported by higher output of MS slabs, flat products of alloy steel, and steel pipes and tubes. In the automobile segment, gains were led by auto components and commercial vehicles, while tractors and engine-related equipment supported growth in machinery and equipment.

Some segments continued to see contraction. Pharmaceuticals output declined, while textiles, apparel and leather products also recorded negative growth, pointing to uneven performance across industries.

Capex-linked segments stay strong

Use-based classification data showed continued strength in investment-linked segments. Infrastructure and construction goods remained the strongest contributor, growing 11.2 per cent in February, followed by capital goods, which surged 12.5 per cent, and intermediate goods, which rose 7.7 per cent.

Consumer durables increased 7.3 per cent, indicating resilient discretionary demand. In contrast, consumer non-durables contracted 0.6 per cent, reflecting mild weakness in essential consumption.

Primary goods grew 1.8 per cent during the month.

Cumulatively, infrastructure, intermediate and capital goods emerged as the leading drivers of overall industrial growth in February.

Cumulative growth steady

For the April–February 2025–26 period, industrial production continues to reflect steady expansion, with growth tracking broadly in line with the previous year despite periodic fluctuations.

The February data is based on quick estimates compiled from a weighted response rate of 88.64 per cent, and will undergo revisions as more complete information becomes available. January figures have also been finalised in the latest release.