Industrial Production Edges Up in February on Manufacturing and Capital Goods Growth

India's Industrial Production Growth Edges Up to 5.2% in February 2026

Key Highlights:

• India's industrial production growth increased to 5.2% in February 2026, up from 5.1% in the previous month.
• Manufacturing sector growth accelerated to 6% year-on-year, driven by a sharp increase in capital goods output to 12.5%.

Sectoral Performance:

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• Capital Goods: Output surged 12.5%, marking a sharp acceleration from 4.1% in the previous month.
• Infrastructure and Construction Goods: Growth remained robust at 11.2%, although slower than the strong 14.6% recorded in January.
• Intermediate Goods: Growth improved to 7.7% from 6.3%, indicating stronger activity across supply chains.
• Consumer Durables: Expansion remained steady at 7.3%, reflecting resilient urban demand.
• Mining: Growth moderated to 3.1% from 4.3%, while Electricity Output slowed sharply to 2.3%.
• Consumer Non-Durables: Continued to contract, shrinking 0.6%, underscoring persistent weakness in mass consumption.

Broader Trends:

• Industrial growth has remained volatile over the past year, with a sharp dip in October 2025 followed by a strong rebound in subsequent months.
• Investment-led growth is gaining traction, while consumption, especially in lower-income segments, remains subdued.
• Activity is likely to be affected in March due to LPG shortages and war-related uncertainty, with flash PMI numbers showing business activity slowing drastically.