India's Industrial Output Surges to New High of 5.2%, Manufacturing Leads Surge
India's industrial output surged 5.2% in February driven by a robust recovery led primarily across the manufacturing sector as per latest Index of Industrial Production (IIP) data released on Wednesday, with capital goods and infrastructure sectors also contributing significantly to this upward trend according to reports from ANI Times Of Indiatimes Hindu Businessline PHDCCI Amarujala.
Key Points
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1India's Index of Industrial Production (IIP) grew by 5.2% year-on-year in February, marking a significant acceleration from the previous month.
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2The manufacturing sector was identified as the primary driver behind this industrial growth expansion during January and early March reporting periods.
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3Official data indicates that factory output expanded at different rates depending on whether comparing to late 2025 or mid-February figures in various reports.
Developments
The Index of Industrial Production (IIP) grew 5.2% year-on-year in February 2026, driven primarily by manufacturing expansion and positive growth across mining and electricity sectors. This recovery trend was supported by strong performance from capital-intensive industries such as basic metals production at a record pace due to steel output increases.
India's industrial output grew by 5.2% in February, driven primarily by a robust manufacturing increase that contributed over three-quarters to the Index of Industrial Production (IIP). This expansion was supported by double-digit growth in key sectors including basic metals and motor vehicles alongside strong performance from capital goods at 12.5%.
The Index of Industrial Production grew 5.2% year-on-year to a quick estimate index level of 159 in February, reflecting broad-based recovery across manufacturing sectors despite geopolitical tensions according to PHDCCI President Rajeev Juneja. Capital-intensive industries such as basic metals and motor vehicles were key drivers due to sustained private investment momentum within infrastructure construction goods (20% growth).
India's overall industrial output grew by more than five percent in February driven largely by a six percentage point increase from manufacturing sector activity and revisions upward for January data, according to official statistics released on Monday; however growth remained flat during April-February FY26 compared with the same period last year.