India's industrial growth rose to 5.2% in February: PHDCCI

IIP recorded a growth of 5.2 per cent in February 2026, over 4.8 per cent (quick estimate) in January 2026, indicating a continued recovery in industrial activity.

Rajeev Juneja, president, PHDCCI, said the improvement in industrial production reflected strengthening momentum in capital-intensive sectors, particularly infrastructure and manufacturing. Further, sustained expansion in capital goods signalled improving private investment activity, a critical element for medium-term growth.

“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 per cent, followed by mining at 3.1 per cent and electricity at 2.3 per cent. 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 per cent), manufacture of motor vehicles, trailers and semi-trailers (14.9 per cent) and manufacture of machinery and equipment (10.2 per cent).

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 per cent), infrastructure/construction goods (11.2 per cent), and intermediate goods (7.7 per cent). 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 holds the key to support this growth momentum,” added Ranjeet Mehta, SG & CEO, PHDCCI.