India’s Index of Industrial Production (IIP) grew by only 2.9% in February 2025, the slowest in six months.
This growth was much lower than the 4% expected by economists.
The slowdown was mainly due to weaker performance in mining, manufacturing, and electricity sectors.
Mining sector growth dropped to 1.6%, compared to 8.1% in February 2024.
Manufacturing grew at 2.9%, down from 4.9% last year.
Electricity production slowed to 3.6%, from 7.6% a year ago.
Among goods categories, only capital goods showed strong growth at 8.2%, much higher than 1.7% a year earlier.
Intermediate goods had the slowest growth at 1.5%.
Consumer non-durables continued to decline, but the fall was smaller (-2.1% vs -3.2% last year).
Output growth in all sub-sectors declined compared to January 2025, marking the first such drop in five months.
Experts say this points to weak and unstable industrial growth.
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