Data Alert
Feb IIP growth falls to six-month low of 2.9%
This story was originally published at 16:59 IST on 11 April 2025
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--India Feb IIP growth 2.9% vs 5.6% year ago
--Informist poll estimated Feb IIP growth at 3.8%
--India Jan IIP growth revised to 5.2% vs 5.0% provisional
--India Apr-Feb IIP growth 4.1% vs 6.0% year ago
--India Feb mining sector growth 1.6% vs 8.1% year ago
--India Feb manufacturing sector growth 2.9% vs 4.9% year ago
--India Feb electricity sector growth 3.6% vs 7.6% year ago
--India Feb primary goods output growth 2.8% vs 5.9% year ago
--India Feb capital goods output growth 8.2% vs 1.7% year ago
--India Feb intermediate goods output growth 1.5% vs 8.6% year ago
--India Feb infrastructure goods output growth 6.6% vs 8.3% year ago
--India Feb consumer durables output growth 3.8% vs 12.6% year ago
--India Feb consumer non-durables output growth -2.1% vs -3.2% year ago
--India Feb industrial growth of 2.9% lowest in 6 months
--Govt: IIP data for March to be released on Apr 28
NEW DELHI - India's industrial output, as measured by the Index of Industrial Production, grew at the slowest pace in six months at 2.9% in February, data released by the statistics ministry Friday showed. Industrial output had risen by 5.6% in February last year, while the Janaury growth print was revised higher to 5.2% from 5.0% originally.
At 2.9%, the latest IIP growth print is well below expectations. According to an Informist poll, industrial growth was seen falling to 3.8% in February. For Apr-Feb, India's industrial output was up 4.1% compared to the 6.0% growth seen in the first 11 months of 2023-24 (Apr-Mar).
Sequentially, the industrial output fell 6.4% from January, the biggest on-month decline in 10 months. Industrial output is likely to have declined on a month-on-month basis due to fewer number of working days in February.
The on-year growth in industrial output slowed down in February because of weaker performance of manufacturing and mining sectors compared to January. The manufacturing sector, which has the biggest weightage in the index, grew at a six-month low pace of 2.9% on year in February. Manufacturing sector output had risen at a 10-month high of 5.8% in January.
The mining sector output grew just 1.6% on year in February, the slowest rate of expansion in four months, and much lower than the 4.4% growth seen in January. Electricity sector output rose 3.6% on year in February compared to 2.4% a month ago.
Within the use-based classification, year-on-year output growth in February was slower compared to the previous month in all six categories.
"Worryingly, the output growth of all the sub-sectors at the use-based level declined in February 2025 compared to the previous month, after a gap of five months. This indicates the muted and volatile nature of industrial output growth," said Paras Jasrai, senior economic analyst at India Ratings and Research.
Primary goods output growth fell to a three-month low of 2.8% in February, while the production of intermediate goods fell to a 24-month low of 1.5%. Primary goods and intermediate goods ouput had risen 5.5% and 5.3%, respectively, in January.
Consumer non-durables output fell 2.1% on year in February compared to a 0.3?ll seen in January. Consumer durables ouput grew 3.8% in February, the slowest rise in 15 months, and much slower than the 7.2% growth seen in January. Capital goods was the best perfomer in February, with output rising 8.2% on year, albeit slower than January's 10.3% growth.
"With the onset of the summer, the power demand has seen a pickup as it was up 6.6% yoy (year-on-year) in March 2025, at a nine-month high. In addition, there has been an indication of pickup in government spending in March 2025 with the usual rush to meet capex targets both by state and Union government," Jasrai said. "However, other high frequency indicators such as crude steel, coal production and petroleum consumption indicated muted activity in March 2025."
India Ratings expects the industrial sector output growth to be around 4% in March. IIP data for March will be released on Apr. 28, with the ministry advancing its publication by two weeks. As such, the lag will reduce to four weeks from six weeks at present.
The following tables detail year-on-year changes in industrial output in February:
| February 2025 | January 2025 | February 2024 | |
| General | 2.9% | 5.2% | 5.6% |
| Mining | 1.6% | 4.4% | 8.1% |
| Manufacturing | 2.9% | 5.8% | 4.9% |
| Electricity | 3.6% | 2.4% | 7.6% |
| Primary goods | 2.8% | 5.5% | 5.9% |
| Capital goods | 8.2% | 10.3% | 1.7% |
| Intermediate goods | 1.5% | 5.3% | 8.6% |
| Infrastructure/construction goods | 6.6% | 7.4% | 8.3% |
| Consumer durables | 3.8% | 7.2% | 12.6% |
| Consumer non-durables | (-)2.1% | (-)0.3% | (-)3.2 |
| Mining | Electricity | Manufacturing | General | |||||
| FY25 | FY24 | FY25 | FY24 | FY25 | FY24 | FY25 | FY24 | |
| April | 6.8% | 5.1% | 10.2% | (-)1.1% | 4.2% | 5.5% | 5.2% | 4.6% |
| May | 6.6% | 6.4% | 13.7% | 0.9% | 5.1% | 6.3% | 6.3% | 5.7% |
| June | 10.3% | 7.6% | 8.6% | 4.2% | 3.5% | 3.5% | 4.9% | 4.0% |
| July | 3.8% | 10.7% | 7.9% | 8.0% | 4.7% | 5.3% | 5.0% | 6.2% |
| August | (-)4.3% | 12.3% | (-)3.7% | 15.3% | 1.2% | 10.0% | 0.0% | 10.9% |
| September | 0.2% | 11.5% | 0.5% | 9.9% | 4.0% | 5.1% | 3.2% | 6.4% |
| October | 0.9% | 13.1% | 2.0% | 20.4% | 4.4% | 10.6% | 3.7% | 11.9% |
| November | 1.9% | 7.0% | 4.4% | 5.8% | 5.5% | 1.3% | 5.0% | 2.5% |
| December | 2.7% | 5.2% | 6.2% | 1.2% | 3.4% | 4.6% | 3.5% | 4.4% |
| January | 4.4% | 6.0% | 2.4% | 5.6% | 5.8% | 3.6% | 5.2% | 4.2% |
| February | 1.6% | 8.1% | 3.6% | 7.6% | 2.9% | 4.9% | 2.9% | 5.6% |
| March | 1.3% | 8.6% | 5.9% | 5.5% | ||||
| Mining | Manufacturing | Electricity | General | |
| Apr-Feb FY25 | 3.2% | 4.1% | 5.0% | 4.1% |
| FY24 | 7.5% | 5.5% | 7.1% | 5.9% |
| FY23 | 5.8% | 4.7% | 8.9% | 5.2% |
| FY22 | 12.2% | 11.8% | 7.9% | 11.4% |
| FY21 | (-)7.8% | (-)9.6% | (-)0.5% | (-)8.4% |
| FY20 | 1.6% | (-)1.4% | 1.0% | (-)0.8% |
| FY19 | 2.9% | 3.9% | 5.2% | 3.8% |
| FY18 | 2.3% | 4.6% | 5.4% | 4.4% |
| FY17 | 5.3% | 4.4% | 5.8% | 4.6% |
| FY16 | 4.3% | 2.8% | 5.7% | 3.3% |
| FY15 | (-)1.4% | 3.8% | 14.8% | 4.0% |
| FY14 | (-)0.1% | 3.6% | 6.1% | 3.3% |
| FY13 | (-)5.3% | 4.8% | 4.0% | 3.3% |
End
Reported by Shubham Rana
Edited by Tanima Banerjee
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