Industrial Production Growth Insights

Industrial production growth in February reached a six-month low at 2.9%, impacted by a high base and lacklustre demand.

Growth Comparisons

• February 2024: IIP grew by 5.6% aided by the leap year.
• January 2024: Growth was at 5.2%.

Sector-Specific Performance

• Mining: Growth slowed to 1.6%.
• Manufacturing: Growth at 2.9%.
• Electricity Generation: Relatively quicker growth at 3.6%.

Use-Base Classification

• Capital Goods: Robust growth at 8.3%.
• Infrastructure Goods: Growth at 6.6%.
• Primary Goods: Decelerated growth at 2.8%.
• Intermediate Goods: Growth slowed to 1.5%.
• Consumer Durable Goods: Increased output by 3.8%.
• Consumer Non-Durables: Continued negative growth at -2.1%.

Market Dynamics and Projections

• E-way Bills: Reached a record 124.5 million in March.
• Expected IIP Growth for March: Around 3%.

Demand and Economic Outlook

Rural demand shows improvement due to agricultural production and normal monsoon expectations. However, urban demand remains a concern.

Moody’s Analytics revised India's GDP forecast for 2025 downward by 30 bps to 6.1% due to US tariff threats.

Global Uncertainty and Economic Measures

The global uncertainty affecting private investment and consumption but noted the potential support from RBI's rate cuts and inflation moderation.