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.
