IIP Growth 5.2% in February 2026: Sector Details and Concepts
Why in the news
Industrial output expanded at 5.2% in February 2026, helped by manufacturing and capital goods, and the January number was revised upward.
Key facts
| Sector | Feb 2026 | Compared with |
|---|---|---|
| Manufacturing | 6.0% | Jan 5.3%; Feb 2025 2.8% |
| Mining and quarrying | 3.1% | Jan 4.3%; Feb 2025 1.6%; a 4-month low |
| Electricity | 2.3% | Jan 5.1% |
| Capital goods, infra and construction goods | Double-digit | – |
| Overall IIP | 5.2% | Jan revised 5.1% (from 4.8%) |
- Growth drivers named: basic metals, automobiles, machinery.
- The revision of January from 4.8% to 5.1% was upward.
Background: IIP basics
- IIP measures short-term changes in the volume of industrial output; base year 2011-12 = 100; issued monthly by MoSPI.
- Three broad sectors: mining, manufacturing (about 77% weight) and electricity (mining about 14%, electricity about 8%).
- Use-based groups: primary, capital, intermediate and infrastructure/construction goods, plus consumer durables and non-durables.
- Capital goods are machines used to make other goods; their rise signals investment-led growth.
- Provisional and final estimates: the first estimate is later revised with full data.
Significance
- Growth looks investment-led and not only consumption-driven.
- Manufacturing is the backbone of the uptick.
- Mining slowed but is still faster than a year ago.
- Electricity slowdown may reflect seasonal demand easing.
- The upward revision is a positive sign for Q4 FY26 GDP estimates.
Exam angle
- Base year: 2011-12; agency: MoSPI.
- Largest weight: manufacturing at about 77%.
- Phrase from Brickwork Ratings: capex and infrastructure-driven upcycle.
- Relevant for RBI Grade B, NABARD Grade A and SEBI Grade A.