India’s industrial production witnessed a slowdown in February 2025, with the Index of Industrial Production (IIP) recording a growth rate of 2.9%, a significant dip from the 5% reported in January.
This data, released by the Ministry of Statistics and Programme Implementation, marks the uneven recovery of India’s industrial economy.
Among the three key sectors, the electricity industry emerged as the strongest performer, achieving a growth rate of 3.6%, followed by manufacturing at 2.9% and mining at 1.6%. Within the manufacturing sector, 14 out of 23 industries registered positive growth. Significant contributions came from the manufacture of basic metals, motor vehicles, and non-metallic mineral products, showcasing growth rates of 5.8%, 8.9%, and 8%, respectively.
In terms of use-based classification, Capital Goods experienced impressive growth at 8.2%, while Infrastructure/Construction Goods surged ahead with a 6.6% increase. On the other hand, Consumer Non-Durables saw a decline of 2.1%, highlighting disparities across segments.
As revisions continue to improve data accuracy, analysts anticipate further insights into India’s industrial sector performance in the coming months.
