India IIP Growth Rises To 5.2% In February 2026 on Manufacturing Boost

India’s industrial output growth, measured by the Index of Industrial Production, increased to 5.2% in February 2026 from 4.8% in January. The latest data reflects a gradual improvement in industrial activity supported by key sectors.

Manufacturing and capital goods were the primary contributors to this expansion during the month. However, sectoral divergence continued, indicating that growth remains uneven across the economy.

Manufacturing Drives Industrial Expansion

Manufacturing, which has the highest weight in the IIP basket, recorded growth of 6% in February 2026 compared to 4.8% in January. This segment played a central role in lifting overall industrial output during the period.

Out of 23 industry groups within manufacturing, 14 registered positive growth, reflecting broad participation within the sector. Key contributors included basic metals, motor vehicles, and machinery and equipment, supported by higher production of steel products, auto components, and tractors.

Capital Goods and Infrastructure Show Strong Momentum

Capital goods output rose sharply by 12.5% in February 2026, indicating continued traction in investment activity. Infrastructure and construction goods also expanded by 11.2%, reflecting ongoing development in core sectors.

Intermediate goods recorded growth of 7.7%, suggesting stable demand across industrial supply chains. These trends highlight that investment-led segments are currently driving industrial growth. The data also indicates sustained activity in capacity expansion and project execution.

Weakness In Electricity and Mining Output

Despite overall growth, certain sectors showed signs of moderation. Electricity generation growth slowed significantly to 2.3% in February from 5.1% in January. Mining output also declined to 3.1% compared to 4.3% in the previous month.

Primary goods growth further moderated to 1.8%, indicating slower expansion in upstream activities. This divergence suggests that not all core sectors are contributing equally to industrial growth.

Mixed Trends in Consumer Demand

Consumer demand remained uneven across categories during the month. Consumer durables output grew by 7.3%, indicating some resilience in discretionary spending.

However, consumer non-durables contracted by 0.6%, highlighting continued weakness in essential consumption demand. The contrast between these segments reflects a mixed consumption environment. It also suggests that recovery in demand is not yet broad-based across income categories.

Read More: Indian Automotive Market to Hit 4.7 Million Sales in FY26. 

Conclusion

India’s IIP growth of 5.2% in February 2026 indicates a modest strengthening in industrial activity. Manufacturing and capital goods sectors provided key support to overall expansion.

At the same time, slower growth in electricity, mining, and essential consumption points to uneven demand conditions. The data highlights that investment-driven growth continues to outpace consumption-led recovery in the industrial sector.

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