India’s industrial growth rises to 5.2% in February

March 30, 2026

New Delhi: India’s industrial growth accelerated to 5.2 per cent year-on-year in February 2026, showing a steady recovery in economic activity driven largely by the manufacturing sector, according to official data released on Monday.

Growth Picks Up from January Levels

The latest data, based on the Index of Industrial Production (IIP), shows an improvement from 4.8 per cent growth recorded in January 2026, indicating a gradual strengthening of industrial output.

The increase reflects sustained momentum in key sectors despite global uncertainties and domestic challenges.

Manufacturing Sector Leads Expansion

The manufacturing sector, which accounts for the largest share of industrial output, emerged as the primary driver of growth in February. Strong demand and improved production levels contributed significantly to the overall rise in industrial activity.

Experts note that manufacturing plays a crucial role in India’s economic growth, and its steady performance is a positive indicator for the broader economy.

Mining and Electricity Show Moderate Growth

While manufacturing led the expansion, the mining and electricity sectors recorded comparatively moderate growth during the month.

These sectors continue to support overall industrial output, although their contribution was less robust compared to manufacturing.

Core Sector Signals Mixed Trends

Data from the eight core industries considered a key indicator of industrial performance showed growth of 2.3 per cent in February, slower than previous months.

While sectors like cement, steel, and coal recorded positive growth, declines in crude oil and natural gas production weighed on overall performance.

The mixed trend in core industries highlights underlying challenges, particularly in energy-related segments.

Capital Goods and Infrastructure Support Growth

Segments linked to capital expenditure and infrastructure development continued to perform well, supporting industrial momentum.

Government spending on infrastructure projects and investments in manufacturing capacity have played a significant role in sustaining industrial growth.

Analysts believe that continued public investment will be crucial in maintaining this growth trajectory.

Economic Outlook Remains Stable

The steady rise in industrial output reflects resilience in India’s economy. Despite some sectoral challenges, the overall trend suggests stable demand conditions and improving business sentiment.

However, experts caution that global uncertainties, supply chain disruptions, and fluctuations in commodity prices could pose risks in the coming months.

India’s industrial growth of 5.2 per cent in February signals a positive trend, driven by strong manufacturing performance and sustained infrastructure activity. While challenges remain in certain sectors, the overall outlook for industrial growth appears stable, reinforcing confidence in the country’s economic recovery.