Industrial output growth dips to 2.9% in February from 5% in January

As measured by industrial products (IIP), compared to January 2025, it has decreased by 2.9% in January 2025 according to data issued by the Ministry of Statistics (Mospi) on Friday.

For February 2025, the growth rates of mining, production and electricity were reported, respectively, 2.9%, and 3.6%.

Recently, the lowest growth rate has been observed in August last year, with zero percentage growth.

The latest data issued in March showed the decline in the main part or infrastructure industry, fell by 5.1% last month, indicating the lowest growth rate of five months.

In the coming financial year, FY25 is scheduled for the production sector, the main investor of India’s industrial product, will feel 4.3 percent growth rate. This is a significant decrease in its previous growth rate of 12.3 percent.

This decline in presentation can be attributed to the slowdown in capital expenditures, which has reached 80% of the annual target in the eleven months of the fiscal year.

“As expected, the flight base in February 2025 was up to 2.9% by 5.2%, and electricity was increased slower in the previous month,” Nayar, Chief Economist, Chapter – Research and Connections, ICRA LTD.

He added: This is probably compensated for deteriorating in the production of electricity due to the growth of stable production.

“IIP growth came by 2.9% of February 2025, noticeable from 5.2% to January, which increases at the minimum level in August. On the basis of usage, prospective, capital goods have been an impressive 8.2% increase, hinting at the gradual rebirth of investment activities, while infrastructure and construction products provide long-term assistance, especially by Staples. & Research limited.