IIP Growth at 2.9% in February 2025: Sector Data
Why in the news
Factory, mining and power output grew more slowly in February 2025, mainly because of a high base and soft demand.
Key facts
- Industrial output grew 2.9%, a six-month low; February 2024 had seen 5.6% (helped by the leap year) and January 2025 saw 5.2%.
- Causes: high base effect and lacklustre demand.
- Rural demand improved on good farm output, a normal monsoon outlook and easier food inflation; urban demand stayed weak.
| Category | Growth in Feb 2025 |
|---|---|
| Mining | 1.6% |
| Manufacturing | 2.9% |
| Electricity | 3.6% |
| Capital goods | 8.3% |
| Infrastructure goods | 6.6% |
| Primary goods | 2.8% |
| Intermediate goods | 1.5% |
| Consumer durables | 3.8% |
| Consumer non-durables | Down 2.1% (third monthly fall) |
Outlook
- Economists feared slower growth in FY 2025-26 due to the tariff war.
- Moody’s Analytics trimmed its 2025 forecast to 6.1%, seeing harm to gems and jewellery, medical devices and textiles.
- The RBI’s rate cut and easing inflation should offer some support.
Exam angle
- Strongest use-based segment: capital goods.
- Only sector contracting: consumer non-durables.