India's Feb Manufacturing Output Grows 2.9% YoY, April-Feb Industrial Output Advances 4.1% YoY

New Delhi, Apr 11, 2025 – India's manufacturing production in February 2025 rose by 2.9% year-over-year (YoY), down from the 4% growth predicted in a Reuters poll, based on government figures. Industrial output during April-February of FY25, however, demonstrated improved performance, advancing 4.1% YoY, showing consistent growth in important sectors.

 

Highlights:

 

February Manufacturing Output:

India's manufacturing economy grew 2.9% YoY in February, posting modest growth against global economic risks and input price pressures.

 

Production lagged behind market forecasts at 4% growth, based on strengthening demand and production data.

 

April-February Industrial Output:

Total industrial output (IIP) for April-February rose 4.1% YoY, underpinned by increased mining, energy, and capital goods output.

 

The quarter indicates resilience in industrial activity despite difficulties like inflationary pressures and fluctuations in export demand.

 

Sectoral Insights:

Major contributing sectors to industrial output growth were capital goods and infrastructure-related manufacturing, driven by government-sponsored infrastructure investment programs.

 

Energy and mining industries registered consistent growth, compensating for slower recovery observed in consumer goods segments.

 

Economic Context:

India's manufacturing and industrial expansion is consistent with wider economic recovery efforts, underpinned by fiscal policy and spending aimed at stimulating output.

 

Yet external influences like global demand uncertainties and geopolitical tensions still limit short-term growth potential.

 

Leadership Insights:

A government official said:

"India's manufacturing output in February indicates steady activity, while the April-February industrial growth indicates resilience in core sectors amid global challenges."

 

An economist said:

"While industrial production is registering consistent growth, the February manufacturing numbers coming in below expectations indicate the sector is still to recover fully from external shocks."

 

Outlook:

India's manufacturing and industrial sectors are likely to pick up pace in the next few months, supported by encouraging government policies, rising private investments, and improving domestic demand.

 

Conclusion:

India's February manufacturing output growth at 2.9% YoY and April-February industrial output growth at 4.1% YoY demonstrate steady progress, although there are still challenges. Strong development programs will be able to continue supporting the growth in the future.

 

Source: Reuters; April 11, 2025.