India's IIP growth accelerates to 5.2% in February, driven by manufacturing and capital goods
India's industrial activity, measured by the Index of Industrial Production (IIP), saw a marginal acceleration to 5.2% in February. This growth was primarily fueled by a significant increase in the manufacturing and capital goods sectors. The Ministry of Statistics and Programme Implementation also revised January's final growth rate upwards to 5.1% from the provisional 4.8%. Manufacturing sector growth accelerated to 6% in February from 5.3% in the previous month, surpassing the 2.8% recorded in February 2025. However, mining and quarrying growth slowed to 3.1%, and electricity sector growth also decelerated to 2.3% in February 2026.
Key Points
- India's Index of Industrial Production (IIP) growth accelerated to 5.2% in February.
- The acceleration was primarily driven by strong performance in the manufacturing and capital goods sectors.
- Manufacturing sector growth reached 6% in February, a significant increase from the previous month and year.
- Mining and quarrying, along with the electricity sector, experienced a slowdown in growth during February 2026.
- The growth is investment-led, indicating a capex and infrastructure-driven upcycle.
Exam Facts
- India's IIP growth rate for February was 5.2%.
- Manufacturing sector growth in February was 6%.
- Mining and quarrying sector growth slowed to 3.1% in February 2026.
- Electricity sector growth slowed to 2.3% in February 2026.
- Rajeev Sharan, Head of Research at Brickwork Ratings, commented on the growth being investment-led.
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