India’s Industrial Output Grows 5.2% in February, Driven by Manufacturing Rebound

India's factory output picked up pace in February, with industrial production growing 5.2% year on year, marking an improvement over the 2.7% recorded in the same month last year, according to data released by the National Statistics Office on Monday.

It has also marginally improved from the upwardly revised 5.1% in January 2026.

The recovery was driven primarily by manufacturing, which accelerated to 6% growth in February 2026 against 2.8% in the year-ago period. The key contributors to growth were manufacture of basic metals (13.2%), Manufacture of motor vehicles, trailers and semi-trailers (14.9%), and manufacture of machinery and equipment (10.2%).

“The important element of growth is the broad-based performance across 14 manufacturing segments, which indicates resilience in industrial demand. However, the contraction in consumer non-durables suggests uneven consumption recovery and requires continued policy attention," said Rajeev Juneja, President, PHDCCI.

Mixed Performance

Mining output rose 3.1%, up from 1.6% a year earlier, although it moderated from 4.3% in January. Power generation growth slowed to 2.3%, compared with 3.6% in February last year and 5.1% in the previous month.

According to Aditi Nayar, Chief Economist at ICRA, four of the six use-based segments showed improved year-on-year performance compared with January.

“Primary goods and infrastructure/construction goods were the exceptions, with the former reflecting weaker mining and electricity output. Notably, infrastructure and construction goods have posted double-digit growth for the fourth consecutive month, indicating robust construction activity,” she said.

Broader Trend

The NSO also revised January’s industrial growth figure upward to 5.1%, from the provisional estimate of 4.8% released earlier.

For the April–February period of FY26, cumulative industrial output growth stood at 4.1%, broadly unchanged from the same period a year earlier. This suggests that while February’s data offers some encouragement, the overall trajectory of industrial activity during the financial year has remained relatively flat.

Looking ahead, ICRA expects industrial growth to moderate to around 3–4% year-on-year in March 2026, amid the emerging impact of the West Asia crisis on manufacturing — both through higher input costs and supply disruptions — along with softer electricity generation.