Industrial Surge: February 2026 Sees Strong IIP Growth

In February 2026, the Index of Industrial Production (IIP) experienced a 5.2% year-on-year increase, primarily driven by a 6% growth in the manufacturing sector. This development was highlighted by the Ministry of Statistics & Programme Implementation, showcasing an improvement over the 4.8% growth observed in January 2026. The overall Quick Estimate of the IIP reached 159, up from 151.1 in February 2025.

Growth was evident across primary sectors, with the mining industry recording a 3.1% rise and the electricity sector a 2.3% uptick. The indices for these sectors were 146.3 for mining, 157.3 for manufacturing, and 198.4 for electricity. The performance is suggestive of recovery trends despite global economic complexities impacting production cycles earlier this year, according to Rajeev Juneja, President of PHDCCI.

Among the manufacturing segments, 14 of 23 industry groups under the National Industrial Classification posted positive growth. Notable contributions came from the basic metals segment, which rose by 13.2%, driven by products like MS slabs and steel pipes. The manufacture of motor vehicles, trailers, and semi-trailers grew by 14.9%, powered by commercial vehicles and auto parts production. In addition, the machinery and equipment category expanded by 10.2%, supported by increased output in agricultural tractors and internal combustion engines.

The use-based classification revealed a solid performance in the capital goods sector, which expanded by 12.5%. Infrastructure and construction goods grew by 11.2%, and intermediate goods by 7.7%. While primary goods saw a 1.8% increase, consumer durables grew by 7.3%. However, consumer non-durables saw a 0.6% drop, requiring policy intervention to address uneven consumption recovery.

Ranjeet Mehta, SG & CEO of PHDCCI, suggested that the IIP data points toward a strengthening industrial production cycle, with infrastructure, intermediate, and capital goods sectors expected to drive growth in the short term. He emphasized the importance of addressing supply-side constraints to maintain this growth momentum.

The Ministry noted that these figures are preliminary and subject to revision, with a weighted response rate of 88.64% for the February estimates. The March 2026 Index will be released on April 28th, 2026.