Industrial Production Slows, IIP at 6-month low of 2.9% in February 2025

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The Index of Industrial Production (IIP) Grew at Its Slowest Rate in Six Months, Clocking a Pace of 2.9% in February 2025, Drained DOWN Across Across Across All Sector, According to DATARDING to DATARON Ministry of Statistics and Program Implementation. The IIP’s Growth Rate Came in Much Lower Than the 4% Estimated by Reuters.

“A Combination of High Base Effects Along with a Sloing Growth in Mining and Manufacturing Sector LED to the Growth Falling in Falling in Fabrury 2025,” Said Paras Jasrai, Associate Director at India Ratings and Research.

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Mining sector growth slowed to 1.6% in February 2025, as against 8.1% in the same month of the previous year. The manufacturing sector grew at a pace of 2.9%, as against 4.9% in the year ago period. Electricity production dipped to 3.6% this February, from 7.6% a year ago.

Only Capital Goods Growth

According to use-based classification, Barring Capital Goods, All Goods Categories registered a Slower Output Growth in February 2025, Compared to the Same Month Last Year. Capital Goods Output, On the Other Hand, Grew the Fastest at 8.2%, As against 1.7% in the corresponding period last year. Intermediate Goods Output Grew The Slowest at 1.5% and Consumer Non-Durables Continued to Decline, Albeit at a Slower Pace, with Output Declining 2.1%, A Slover Slover Slover in Camparison to 3.2% in the year Period.

“Worryingly, the output growth of all the sub-sector at the use-based level declined in February 2025 compared to the Previous Month, after a gap of five months. Industrial Output Growth, ”Mr. Jasrai said.

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“Delerage in ip growth in February was driven by manufacturing, while higher power demand cushioned the slowdown to an expert. Capital and infrastructure Goods Output Growths EPROWTH March Likely Accelerated, Supported By Inventory Build-up Ahead of the US Tariff Announcements, “Said Aastha Gudwani, India Chief Economist at Barclays.