Industrial output growth slows to 6-month low

New Delhi: Industrial production growth eased to 2.9 per cent in February 2025, marking its slowest pace in six months, according to data released by the National Statistical Office (NSO) on Friday. The deceleration was attributed to weaker performances in the manufacturing, mining, and electricity sectors.

The growth in factory output, measured by the Index of Industrial Production (IIP), stood at 5.6 per cent in February 2024. The last time growth dipped lower was in August 2024, when the figure remained flat at zero.

“The moderation in output is visible across key industrial sectors and suggests a dip in demand and production momentum,” said a government official familiar with the data.

In the manufacturing segment, output growth slowed to 2.9 per cent in February this year, compared to 4.9 per cent in the same month last year. Mining production increased by 1.6 per cent, sharply down from 8.1 per cent a year earlier. The electricity sector saw output rise 3.6 per cent, as against 7.6 per cent in February 2024.

The NSO also revised the industrial growth figure for January 2025 to 5.2 per cent from the previously estimated 5 per cent.

For the eleven-month period from April to February in the ongoing fiscal year, the IIP recorded a growth of 4.1 per cent, a drop from 6 per cent seen in the corresponding period of 2023–24.

Among use-based categories, capital goods production expanded by 8.2 per cent in February 2025, up from 1.7 per cent a year ago. Production of consumer durables rose by 3.8 per cent, down from 12.6 per cent in February 2024.

Consumer non-durables, which include fast-moving goods, declined by 2.1 per cent in February this year, compared to a contraction of 3.2 per cent a year earlier.

Output in the infrastructure and construction segment rose by 6.6 per cent, lower than the 8.3 per cent growth seen last year.

Primary goods posted a 2.8 per cent rise, while intermediate goods grew 1.5 per cent, against 8.6 per cent a year earlier.