Industrial growth slows to 2.9% in Feb, weakest in seven months

The latest figure fell short of market expectations—Reuters had projected 4 per cent growth, while Bloomberg had pegged it at 3.6 per cent, according to a Business Standard report.

This is the slowest pace of growth recorded in seven months, with the last instance of a weaker performance in August 2024, when the Index of Industrial Production (IIP) had contracted by 0.1 per cent.

Sector-wise snapshot

Manufacturing, which carries the largest weight in the IIP, registered 2.9 per cent growth—down from 5.5 per cent in January.

Mining activity also lost momentum, expanding by just 1.6 per cent compared to 4.4 percent the previous month.

Electricity generation rose by 3.6 percent, improving on the 2.4 percent growth seen in January, but the pick-up wasn’t enough to counter the overall drag from the other sectors.

Of the 23 industry groups under the National Industrial Classification (NIC) at the two-digit level, 14 posted positive growth. Key contributors to the uptick included:

Basic metals, which expanded 5.8 percent on the back of increased output of alloy steel flat products, steel pipes and tubes, and mild steel bars and rods.

Motor vehicles, trailers and semi-trailers, which recorded 8.9 percent growth, driven by robust production of commercial vehicles, axles, and auto components.

Non-metallic mineral products, which grew 8.0 percent, supported by higher output of cement, cement clinkers, and prefabricated concrete blocks.