Unexpected surge: IIP diverges from core industries data in February 2026
India's industrial growth showed an unexpected positive surprise in February 2026, reaching 5.2%, making it the best performance in nearly two years, despite the Index of Eight Core Industries (IIP) slowing to 2.3%. This divergence suggests strong performance from sectors outside the core industries. Manufacturing sector growth accelerated to 6%, and capital goods sector growth hit a 28-month high of 12.5%. However, consumer non-durables contracted for the second consecutive month, indicating low consumer sentiment, which correlates with shrinking household expenditure's contribution to GDP. The article notes that the West Asia crisis and early March indicators point to a moderation in economic momentum.
Key Points
- India's industrial growth in February 2026 was a surprising 5.2%, the best in nearly two years.
- The Index of Eight Core Industries' growth slowed to 2.3%, indicating that non-core sectors performed well.
- Manufacturing sector growth accelerated to 6%, and capital goods sector growth reached a 28-month high of 12.5%.
- Consumer non-durables contracted for the second consecutive month, signaling low consumer sentiment.
- The upcoming upgraded series of IIP data in May is expected to provide a clearer picture of the economy.
Exam Facts
- February 2026 IIP growth: 5.2%.
- Eight Core Sectors: crude oil, natural gas, refinery products, coal, fertilizers, steel, cement, and electricity.
- Weightage of core sectors in IIP: about 40%.
- Capital goods sector growth in February: 12.5%.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.