Mfg, Mining Pull Down IIP To 6-Mth Low In Feb

The growth performance of mining is expected to deteriorate in March 2025 relative to February 2025. This is likely to be offset by an uptick in electricity generation, amid steady manufacturing growth - Aditi Nayar, Chief Economist at Icra

New Delhi: India’s industrial production growth decelerated to a six-month low of 2.9 per cent in February 2025, mainly due to poor performance of the manufacturing, mining and power sectors, according to official data released on Friday.

The government also revised upward the industrial growth figure to 5.2 per cent for January 2025 from the provisional estimate of five per cent released in March. The factory output, measured in terms of the Index of Industrial Production (IIP), rose by 5.6 per cent in February 2024. The previous low was recorded in August last year when the growth remained flat at zero per cent.

“As expected, the leap year base pulled down the YoY (year-on-year) growth of the IIP to 2.9 per cent in February 2025 from 5.2 per cent in January 2025. The deceleration was broad-based, with all the use-based categories, as well as two of the three sectors barring electricity, witnessing a slower growth in February 2025 vis-a-vis the previous month. While the growth performance of mining is expected to deteriorate in March 2025 relative to February 2025, this is likely to be offset by an uptick in electricity generation, amid steady manufacturing growth,” said Aditi Nayar, Chief Economist at Icra.

The data released by the National Statistics Office (NSO) showed that the manufacturing sector’s output growth slowed to 2.9 per cent in February 2025, down from 4.9 per cent in the year-ago month.