India's industrial production growth accelerated to 5.2% in February

India's industrial production growth accelerated to 5.2% in February 2026, driven primarily by a robust performance in the manufacturing sector. This growth is a positive indicator of the country's economic momentum, with the manufacturing sector's output growth accelerating to 6% in February 2026, a notable increase from the previous year. Key contributors to manufacturing growth include basic metals, motor vehicles, and machinery and equipment, with 14 out of 23 industry groups recording positive growth 

The Index of Industrial Production (IIP) data shows that mining production also saw a slight improvement, growing by 3.1%, while power generation growth stood at 2.3% in February. The growth is investment-led, with basic metals, automobiles, machinery, and double-digit gains in capital goods and infrastructure/construction goods pointing to a capex and infrastructure-driven upcycle. However, consumer demand seems to have slumped, with contractions in both consumer durables and non-durables sectors 

The capital goods sector accelerated to a nine-month high of 12.5% in February 2026, indicating increased investment activity and stronger confidence by industries. Infrastructure and construction goods also remained strong, growing 11.2%, while intermediate goods rose 7.7%. Despite the positive momentum, global geopolitical tensions, especially in the West Asia region, are impacting industrial output, with rising energy prices and input costs creating pressure on manufacturers.