India’s industrial growth held a positive surprise in February 2026, coming in at 5.2%, marginally faster than the growth in January. Apart from November and December last year, February’s industrial performance — as measured by the Index of Industrial Production (IIP) — was the best in nearly two years. The eight core sectors — crude oil, natural gas, refinery products, coal, fertilizers, steel, cement, and electricity — saw their combined growth slow to 2.3% in February, about half the growth rate in January. The capital goods sector’s growth accelerated to a 28-month high of 12.5%, on an already strong base of 8.1%. From the looks of things, February’s strong IIP performance is likely to be a short-lived acceleration.

Source: The Hindu March 31, 2026 20:05 UTC