New Delhi: India’s industrial activity showed remarkable resilience as the Index of Industrial Production (IIP) grew by 5.2 per cent in February 2026, up from 4.8 per cent in January. According to the PHD Chamber of Commerce and Industry (PHDCCI), this growth indicates a strengthening recovery in the industrial sector despite the ongoing geopolitical instability in West Asia. The Quick Estimate of the IIP for February stands at 159.0, a significant year-on-year improvement from the 151.1 recorded in February 2025.
The manufacturing sector served as the primary engine of growth, registering a robust 6.0 per cent increase, while the mining and electricity sectors grew by 3.1 per cent and 2.3 per cent, respectively. Within manufacturing, 14 out of 23 industry groups reported positive growth, led by basic metals at 13.2 per cent and motor vehicles at 14.9 per cent. Rajeev Juneja, President of PHDCCI, noted that the sustained expansion in capital goods—which grew by 12.5 per cent—is a critical signal that private investment activity is gaining momentum, providing a solid foundation for medium-term economic growth.
However, the data also highlighted some economic disparities, specifically a contraction in consumer non-durables. This suggests that while infrastructure and capital-intensive sectors are thriving, the recovery in general household consumption remains uneven. Dr. Ranjeet Mehta, CEO of PHDCCI, emphasized that while infrastructure and intermediate goods will likely drive the short-term industrial cycle, the government must continue addressing supply-side constraints to maintain this upward trajectory.
