India’s factory output, measured by the Index of Industrial Production (IIP), grew 2.9% in February 2025, sharply lower than the 5.2% growth recorded in January, reflecting a broad-based moderation across key sectors.
#BreakingNews | February IIP at 2.9% vs 5.2% (MoM) pic.twitter.com/8HCelr7yE1
— CNBC-TV18 (@CNBCTV18Live) April 11, 2025
Data released by the Ministry of Statistics and Programme Implementation showed that growth in the manufacturing and mining sectors eased to 2.9% and 1.6% respectively in February, compared to 5.8% and 4.4% in the previous month. However, electricity generation remained a bright spot, rising 3.6% in February, an improvement over January’s 2.4%.
Use-based classification revealed a broad slowdown in February. Growth in primary goods eased to 2.8% from 5.5% in January, while capital goods rose 8.2%, slower than 10.3% a month ago. Similarly, infrastructure/construction goods grew 6.6%, compared to 7.4% in January.Consumer demand remained patchy. While consumer durables expanded 3.8%—down from 7.2% the previous month—consumer non-durables slipped deeper into contraction, shrinking 2.1% versus a 0.3% decline in January.The IIP index for February stood at 151.3, up from 147.1 a year earlier. Sector-wise, the mining index was 141.9, manufacturing came in at 148.6, and electricity rose to 194.0.Within the manufacturing sector, 14 of the 23 industry groups posted positive growth. The top three drivers were:
Manufacture of basic metals, which grew 5.8%, supported by items like “Flat products of alloy steel,” “Pipes and tubes of steel,” and “Bars and rods of mild steel.”
Manufacture of motor vehicles, trailers and semi-trailers, which saw 8.9% growth, aided by increased production of “Auto components/spares and accessories,” “Axles,” and “Commercial vehicles.”
Manufacture of other non-metallic mineral products, which rose 8.0% thanks to items like “Cement (all types),” “Cement clinkers,” and “Pre-fabricated concrete blocks (including RMC).”
First Published: Apr 11, 2025 4:21 PM IST
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