According to government data released on March 30, India’s industrial production accelerated in February 2026. The Index of Industrial Production (IIP) increased by 5.2 percent year-on-year, which is more than 4.8 percent in January. The main reason for this increase was the strong performance of the manufacturing sector, while a slightly lower growth was recorded in the mining and electricity sectors. The manufacturing sector grew by 6.0 percent in February, while growth in other main sectors remained steady but slow. During this month, mining production increased by 3.1 percent and electricity generation increased by 2.3 percent. According to the data, IIP stood at 159.0 in February 2026, which is more than 151.1 in the same month last year. This is a sign of continuous expansion in industrial activities.
Boom in manufacturing sector
Within the manufacturing sector, 14 out of 23 industrial groups at the two-digit NIC level recorded positive growth in February. This reflects a steady but somewhat concentrated expansion. The sectors contributing the most include basic metals, which increased by 13.2 percent. Motor vehicles, trailers and semi-trailers, which increased by 14.9 percent. and machinery and equipment (nec), which increased by 10.2 percent. Growth in basic metals was driven by higher production of MS slabs, alloy steel flat products, and steel pipes and tubes.
In the automobile sector, auto components and commercial vehicles led the growth, while tractors and engine-related components supported the growth in machinery and equipment. The decline continued in some sectors. The production of pharmaceuticals declined, while textiles, clothing and leather products also recorded negative growth. This points to uneven performance in different industries.
Capex related sectors strong
The data of use based classification shows that investment related sectors remain strong. Infrastructure and construction materials remained the biggest contributing sectors, which grew by 11.2 percent in February. This was followed by Capital Goods, which grew by 12.5 percent, and Intermediate Goods, which grew by 7.7 percent.
Consumer durables increased by 7.3 percent, indicating strength in discretionary demand. In contrast, consumer non-durable goods declined by 0.6 percent, reflecting mild weakness in essential consumption. Primary products increased by 1.8 percent during this month. Overall, infrastructure, intermediate and capital goods emerged as the main drivers of overall industrial growth in February.
overall growth remained stable
For the period April-February 2025-26, industrial production is seen continuing to expand. Despite periodic fluctuations, the growth rate has remained broadly in line with the previous year. The February figures are based on quick estimates compiled from a weighted response rate of 88.64 percent, and will be revised as more complete information becomes available. In the latest released figures, the figures for January have also been finalized.