PR No – 102
30th March
New Delhi
IIP grows at a healthy rate at 5.2 percent in February 2026 over 4.8 percent January 2026 despite ever increasing geopolitical tensions says PHDCCI
The Index of Industrial Production (IIP) recorded a growth of 5.2 percent in February 2026, over 4.8 percent (Quick Estimate) in January 2026, indicating a continued recovery in industrial activity.
“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 Mr. 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.”
The Manufacturing sector led the growth at 6.0 percent, followed by Mining at 3.1 percentand Electricity at 2.3 percent. The Quick Estimate of the IIP stands at 159.0, compared to 151.1 in February 2025, underlining a year-on-year improvement in industrial output.
Within manufacturing, 14 out of 23 industry groups at the NIC 2-digit level registered positive growth. The key contributors to growth were manufacture of basic metals (13.2%), Manufacture of motor vehicles, trailers and semi-trailers (14.9%), and manufacture of machinery and equipment (10.2%).
A notable increase, indicating both infrastructure and consumption-linked demand, was witnessed in items groups such as MS slabs, alloy steel products, pipes and tubes, auto components and commercial vehicles, and agricultural tractors and industrial engines.
On a use-based classification, growth rates highlight strong momentum in Capital Goods (12.5%), Infrastructure/Construction Goods (11.2%), and Intermediate Goods (7.7%). The leading contributors to overall IIP growth were Infrastructure/Construction Goods, Intermediate Goods, and Capital Goods.
“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.”