India's industrial output rises 5.2% year-on-year in February
What's the story
India's industrial output witnessed a jump in February 2026, with the Index of Industrial Production (IIP) growing by 5.2% year-on-year. This is an increase from the 4.8% growth recorded in January, according to government data released on March 30. The rise was mainly driven by a robust performance in the manufacturing sector, despite modest gains in mining and electricity sectors.
Sector performance
India's manufacturing grows 6% in February
The manufacturing sector witnessed a growth of 6% in February, outpacing other core segments that recorded steady but slower gains. Mining output increased by 3.1%, while electricity generation saw a rise of 2.3% during the month under review. In absolute terms, the IIP stood at 159 in February 2026, up from 151.1 in the same month last year, indicating continued expansion in industrial activity across sectors.
Industry groups
14 Indian manufacturing groups showed growth
In the manufacturing sector, 14 out of 23 industry groups at the two-digit NIC level recorded positive growth in February. The top contributors were basic metals (13.2%), motor vehicles, trailers and semi-trailers (14.9%), and machinery and equipment (n.e.c.) (10.2%). The growth in basic metals was aided by higher output of MS slabs, flat products of alloy steel, and steel pipes and tubes.
Mixed results
Indian pharmaceuticals textiles apparel leather contract
Despite the overall positive growth, some segments continued to see contraction. The pharmaceuticals sector witnessed a decline, while textiles, apparel and leather products also recorded negative growth. Data based on use-based classification shows continued strength in investment-linked segments. Infrastructure and construction goods grew by 11.2% in February, capital goods surged by 12.5%, and intermediate goods rose by 7.7%.