New Delhi

India’s industrial output grew by 5.2 per cent in February, driven largely by a strong performance in the manufacturing sector, according to data released by the National Statistics Office on Monday.

The growth, measured through the Index of Industrial Production (IIP), marks a notable improvement from the 2.7 per cent expansion recorded in February last year. The NSO also revised January 2026’s IIP growth upward to 5.1 per cent from the earlier estimate of 4.8 per cent.

Manufacturing, which carries the highest weight in the index, recorded a robust growth of 6 per cent in February compared to 2.8 per cent in the same month a year ago. This uptick played a key role in sustaining overall industrial momentum.

Mining activity also showed modest improvement, with output rising 3.1 per cent against 1.6 per cent in February last year. However, power generation growth slowed to 2.3 per cent, down from 3.6 per cent in the corresponding period.

For the April–February period of the current financial year (FY26), industrial production growth remained steady at 4.1 per cent year-on-year.

Within manufacturing, 14 out of 23 industry groups recorded positive growth. Key contributors included basic metals, motor vehicles and related equipment, and machinery manufacturing, all of which posted strong double-digit gains.

From a use-based perspective, capital goods led the growth with a sharp 12.5 per cent increase, indicating sustained investment activity. Infrastructure and construction goods also grew by 11.2 per cent, while intermediate goods and consumer durables recorded healthy gains. However, consumer non-durables saw a marginal contraction of 0.6 per cent.

Experts, however, remain cautious about the near-term outlook. Aditi Nayar noted that industrial growth could moderate to around 3–4 per cent in March, citing the potential impact of the ongoing West Asia crisis on manufacturing through higher input costs and supply disruptions, along with weaker electricity generation.

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Overall, while February’s data reflects resilience in India’s industrial sector, evolving global uncertainties may weigh on growth in the coming months.