HYDERABAD: India’s industrial growth declined sharply to 2.9% in February 2025, marking a seven-month low, according to the latest Index of Industrial Production (IIP) data. This is a significant drop from the 5% growth recorded in January. The slowdown is primarily attributed to weak performance in the manufacturing and mining sectors.
The manufacturing sector, which accounts for over three-quarters of the IIP, saw its output shrink to 2.9% in February, down from 5.8% in January. Similarly, the mining sector reported a decline of 2.8%—its lowest in four months—compared to 4.4% growth in January.
In contrast, the electricity sector posted a modest improvement with 3.6% growth in February, up from 2.4% in January.
Sector-wise Industrial Growth: January vs. February 2025
- Manufacturing: 5.8% → 2.9%
- Mining: 4.4% → 1.6%
- Electricity: 2.4% → 3.6%
- Primary Goods: 5.5% → 2.8%
- Capital Goods: 10.3% → 9.0%
- Intermediate Goods: 5.2% → 1.4%
- Infrastructure Goods: 7.0% → 6.4%
- Consumer Durable Goods: 7.2% → 3.9%
- Consumer Non-Durable Goods: 0.2% → −1.8%
The contraction in consumer non-durable goods, which saw a negative growth of 1.8%, further signals waning consumption demand. Meanwhile, capital goods and infrastructure-related production also witnessed a deceleration, though they remained relatively strong.
Economists have raised concerns about the uneven nature of industrial recovery, pointing to the need for policy support to revive demand and boost manufacturing resilience amidst global uncertainties.
