India's Index of Industrial Production (IIP) registered a growth of 5.2% in February 2026, accelerating from 4.8% in January 2026, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The official PIB/MoSPI release was posted on March 30, 2026.
The manufacturing sector, which accounts for over 77% of the IIP weightage, posted a robust 6% growth year-on-year. Fourteen out of 23 industry groups recorded positive growth, with the top contributors being basic metals, motor vehicles, and machinery and equipment — all recording double-digit expansion.
Capital goods output surged 12.5% in February 2026, the highest growth in nine months, signalling increased investment activity in the economy. Capital goods growth is closely watched as a proxy for private sector investment sentiment. The mining sector grew at 3.1%, while electricity generation expanded by 2.3%.
Despite global headwinds, including elevated commodity prices and geopolitical tensions in West Asia, India's industrial output remained resilient. The consistent improvement in manufacturing and capex-linked sectors has been attributed to government infrastructure spending, the Production-Linked Incentive (PLI) scheme gains, and stable domestic demand.
The PHDCCI (PHD Chamber of Commerce and Industry) noted that while the momentum is positive, the growing geopolitical uncertainty could affect imported input costs and export competitiveness. Analysts expect IIP growth to moderate slightly in March due to base effects and global demand softening.
For RAS aspirants, the IIP is a key macroeconomic indicator tracking industrial activity across mining, manufacturing, and electricity sectors. Understanding its components and policy implications is essential for Paper III (Economy) of the RAS/RTS examination.