India’s industrial production growth seen at a 7-month low of 2.9% in February

Industrial production in India based on the Index of Industrial Production (IIP) grew at a slower pace of 2.9 per cent, hitting a 7-month low, in February 2025 against the 5 per cent growth reported in the January this year, quick estimates released by the Indian Statistics Office (ISO) showed.

The slow pace of growth was due mainly to slackness in the mining and manufacturing sectors, which grew at 2.9 per cent and 1.6 per cent, respectively, in February, while electricity sector recorded growth rate of 3.6 per cent during the month.

Within the manufacturing sector, 14 out of the 23 industry groups have recorded year-on-year growth in February 2025, with the top three contributors that included basic metals, motor vehicles, trailers and semi-trailers and non-metallic mineral products.

Basic metals production growth was driven by higher output of alloy steel flat products, steel pipes and tubes, and mild steel bars and rods.

Production growth in the motor vehicles, trailers, and semi-trailers segment was supported by increase in the production of auto components, axles, and commercial vehicles.

The 8 per cent growth in non-metallic mineral products was led by higher output of cement, cement clinkers, and prefabricated concrete blocks.

Primary goods production increased by 2.8 per cent while capital goods sector production expanded by 8.2 per cent, intermediate goods production by 1.5 per cent and production of infrastructure/construction goods increased by 6.6 per cent during February 2025.

Production of consumer durables and consumer non-durables reported growth rates of 3.8 per cent and (-)2.1 per cent, respectively, during February 2025.

Along with quick estimates of IIP for February 2025, the ISO also carried out the first revision of indices for January 2025 and the final revision for November 2024 indices.