IIP Growth: Industrial production growth rate at six-month low of 2.9% in February, data released

Industrial growth in India dipped to an absolute six-month low in February 2025 to 2.9%. It is primarily because the performance in the manufacturing, mining, and power sectors has been poor. This has been confirmed with official data put out by the government on Friday morning.

The government has also adjusted the industrial growth rate figure to 5.2% in the month of January 2025, which is more than the 5% provisional estimate released in March.

The factory production, calculated by the Index of Industrial Production (IIP), increased by 5.6% during the month of February 2024. Previously, the smallest growth rate was experienced in August of the previous year when the growth rate remained constant at 0%.

Data released by the National Statistical Office (NSO) shows that the manufacturing sector's production growth slowed to 2.9% in February 2025. It was 4.9% in the same month a year ago. The growth rate of mining production declined to 1.6% from 8.1% a year ago.

The growth rate of electricity generation also declined to 3.6% in February 2025, from 7.6% in the same month a year ago. IIP grew by 4.1% in the April-February period, which is less than the 6% recorded in the same period a year ago.