India's manufacturing production growth declines to 2.9% in February 2025, the Indian Express reported citing Index of Industrial Production (IIP) data released by the National Statistical Office (NSO). It marked one of the lowest rates in past 6 months.
Factory output growth reflects the rate at which India's industries are producing goods. It is measured by Index of Industrial Production (IIP) and represent changes in the volume production of manufacturing, mining, and electricity sectors.
The decline was triggered by soft manufacturing and mining growth. The manufacturing industry expanded by only 2.9%, and mining expanded by 1.6%, according to NSO figures.
Electricity was the only sector to witness a steady balance, with its output growth of 3.6% in February, higher the preceding month. However, it stood at 7.6% in February last year.
Despite the overall slowdown, capital goods output showed investment growth of 8.2% in February 2025, down from 10.3% in January but significantly higher than 1.7% in February 2024.
Infrastructure or construction goods output maintained a steady growth of 6.6% in February, slightly lower than 7.4% in January and 8.3% in February 2024.
Triggered by slowdown in the industry and global uncertainty, the Reserve Bank of India reduced its growth forecast for the current fiscal year to 6.5% and warned of further risks.
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Economists warned that global economic instability and concerns over US import tariffs could unsteady India's manufacturing sector and overall economic growth.
While mining output is expected to weaken further in March, economists suggested that steady manufacturing growth and increased electricity generation could help balance the overall industrial performance.
