Index of Industrial Production (IIP) 

The Index of Industrial Production (IIP) recorded a growth rate of 2.9% in February 2025, which is the slowest in six months, according to data from the Ministry of Statistics and Programme Implementation. This rate was notably lower than Reuters' estimate of 4%.

Sectoral Performance

• Mining Sector:
  • Growth rate decreased to 1.6% from 8.1% in February 2024.
• Manufacturing Sector:
  • Growth registered at 2.9%, down from 4.9% the previous year.
• Electricity Production:
  • Slowed to 3.6% from 7.6% a year earlier.

Use-Based Classification

• Capital Goods:
  • Fastest growth at 8.2% compared to 1.7% in February 2024.
• Intermediate Goods:
  • Slowest growth at 1.5%.
• Consumer Non-Durables:
  • Decline of 2.1%, which is slower than the previous year’s 3.2% decline.

Key Observations

• All sub-sectors at the use-based level experienced a decline in output growth in February 2025 compared to January 2025, breaking a five-month trend of growth.
• The manufacturing sector's deceleration was a significant factor in the overall IIP slowdown, although higher power demand provided some support.
• The growth of capital and infrastructure goods is noted to remain strong, with expectations of acceleration in March due to inventory preparations ahead of U.S. tariff announcements.