India’s industrial output grows 5.2% in February, led by manufacturing

India’s industrial production grew 5.2% in February 2026, supported by a strong performance in the manufacturing sector, according to data released by the National Statistics Office (NSO) on Monday. 

Factory output, measured by the Index of Industrial Production (IIP), had expanded 2.7% in February 2025, indicating a sharp year-on-year improvement. 

The NSO also revised January 2026 industrial growth to 5.1% from the earlier provisional estimate of 4.8%. 

Manufacturing leads growth; mining, power see modest gains 

Manufacturing output, which carries the highest weight in the index, grew 6% in February 2026, up from 2.8% in the year-ago month. 

Mining output rose 3.1%, slightly higher than 1.6% growth recorded a year earlier while electricity generation expanded 2.3% compared to 3.6% in February 2025. 

Overall, the IIP stood at 159.0 in February 2026, up from 151.1 in the corresponding month last year, reflecting improved industrial activity. 

Broad-based growth across sectors 

Within manufacturing, 14 out of 23 industry groups at the NIC 2-digit level recorded positive growth. Key contributors included manufacture of basic metals (13.2%), motor vehicles, trailers and semi-trailers (14.9%), and machinery and equipment (10.2%). 

During the April–February period of FY26, industrial production growth remained flat at 4.1% compared to the same period a year ago. 

Industry sees improving investment cycle 

“The improvement in industrial production reflects strengthening momentum in capital-intensive sectors, particularly infrastructure and manufacturing. Further, sustained expansion in capital goods signals improving private investment activity, a critical element for medium-term growth, said Rajeev Juneja, President, PHDCCI.” 

“The important element of growth is the broad-based performance across 14 manufacturing segments, which indicates resilience in industrial demand. However, the contraction in consumer non-durables suggests uneven consumption recovery and requires continued policy attention, he added.” 

“IIP data points to a gradually strengthening industrial production cycle, with infrastructure, intermediate, and capital goods expected to remain key drivers in the short-term. Continued easing of supply-side constraints hold the key to support this growth momentum, said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.”