Factory output sees strong momentum as manufacturing expands at 6%
India’s industrial production grew 5.2 per cent in February, primarily driven by stronger performance in the manufacturing sector, according to official data released on Monday.
Factory output, measured by the Index of Industrial Production (IIP), had expanded 2.7 per cent in February 2025, indicating a significant improvement this year.
Data released by the National Statistics Office also showed that industrial production growth for January 2026 has been revised upward to 5.1 per cent, compared to the earlier provisional estimate of 4.8 per cent.
Manufacturing sector leads growth
The manufacturing sector, which carries the highest weight in the IIP basket, recorded 6 per cent growth in February 2026, a sharp increase from 2.8 per cent in the same month last year.
The improvement in manufacturing output played a key role in boosting the overall industrial growth figures.
Mining output improves
The mining sector also posted moderate improvement, registering 3.1 per cent growth, compared with 1.6 per cent growth recorded in the year-ago period.
Power sector growth slows
Growth in electricity generation slowed slightly during the month. The sector expanded 2.3 per cent in February, lower than the 3.6 per cent growth recorded in February last year.
Industrial growth steady during FY26
For the April–February period of FY26, India’s industrial production growth remained largely unchanged at 4.1 per cent, compared to the same period a year earlier.
Economists say the improvement in manufacturing activity indicates stable domestic demand and improving industrial momentum, although sustained growth will depend on global economic conditions and investment trends.
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