India IIP Feb 2026: Manufacturing Drives Growth Recovery
India’s IIP growth rises to 5.23% in Feb 2026, led by manufacturing. Key sector trends, FY26 outlook, and investor insights explained.
IIP STORY FOR FEBRUARY 2026 – BETTER THAN JANUARY
After 2 robust months of November and December 2025; when IIP was above 7% and 8% respectively, the IIP tapered to 4.83% in January. However, February did see a marginal pick-up to 5.23%, thanks to a revival in manufacturing. The table captures the 1-year story.
| Month | IIP Growth (%) |
|---|---|
| Feb-25 | 2.72% |
| Mar-25 | 3.94% |
| Apr-25 | 2.57% |
| May-25 | 1.87% |
| Jun-25 | 1.52% |
| Jul-25 | 4.27% |
| Aug-25 | 4.12% |
| Sep-25 | 4.63% |
| Oct-25 | 0.53% |
| Nov-25 | 7.16% |
| Dec-25 | 8.04% |
| Jan-26 | 4.83% |
| Feb-26 | 5.23% |
Data Source: MOSPI
What are the key takeaways from the February 2026 IIP data?
- For February 2026, the Mining IIP and the Electricity IIP were lower than January. However, the manufacturing IIP (which has the highest weightage of 77.6%), improved over January. That helped the headline IIP for February to improve to 5.23%.
- If you look at the growth narrative, they are essentially the domestic stories. However, certain export products like textiles, apparel and leather are seeing a gradual turnaround. This indicates that the worst may be over for the export stories.
- The cumulative IIP for the first 11 months of FY26 improved slightly to 4.1%. This is broadly at par with the full year IIP data for most years. However, the big difference is that headline IIP is being driven by manufacturing and not by mining or electricity.
- If you look at use-based segments of IIP, only consumer non-durables contracted in FY26. Other user segments like capital goods and infrastructure have grown in double digits; while growth in intermediates and consumer durables was also robust.
Let us now turn to the granular growth of the 23 products in the IIP basket.
FEBRUARY 2026 AND FY26 IIP: DISSECTING IIP BASKET
The table captures comparative IIP growth for last 3 months, with respective components.
| Product Basket | Weights | Dec-25 | Jan-26 | Feb-26 | FY-26# |
|---|---|---|---|---|---|
| Manufacture of food products | 5.3025 | 8.8 | 1.8 | 2.0 | 1.0 |
| Manufacture of beverages | 1.0354 | -1.3 | -2.8 | -1.6 | -2.9 |
| Manufacture of tobacco products | 0.7985 | 18.6 | 13.0 | -17.0 | 8.2 |
| Manufacture of textiles | 3.2913 | -2.7 | -3.7 | 0.4 | -0.8 |
| Manufacture of wearing apparel | 1.3225 | -8.1 | -10.3 | -16.6 | -4.1 |
| Manufacture of leather products | 0.5021 | -1.3 | -7.7 | 0.6 | -4.0 |
| Manufacture of wood products | 0.1930 | 4.3 | 5.5 | -0.7 | 8.2 |
| Manufacture of paper products | 0.8724 | 7.0 | 5.7 | 8.6 | 0.1 |
| Printing and recorded media | 0.6798 | 5.7 | -2.2 | -1.3 | -6.8 |
| Coke and refined petroleum products | 11.7749 | -0.4 | -0.3 | -0.3 | 1.3 |
| Chemicals and chemical products | 7.8730 | 1.5 | 3.1 | 4.5 | -0.2 |
| Pharmaceuticals, botanical products | 4.9810 | 10.2 | -7.2 | -2.3 | 0.2 |
| Rubber and plastics products | 2.4222 | 5.1 | -3.8 | -1.4 | 0.5 |
| Other non-metallic mineral products | 4.0853 | 12.3 | 9.9 | 7.2 | 7.1 |
| Manufacture of basic metals | 12.8043 | 13.3 | 13.2 | 13.2 | 11.2 |
| Fabricated metal products | 2.6549 | 8.3 | 9.6 | 6.2 | 7.4 |
| Computer, electronic and optical products | 1.5704 | 35.7 | 18.0 | 5.4 | 8.6 |
| Manufacture of electrical equipment | 2.9983 | -11.2 | 6.4 | 9.1 | 9.0 |
| Manufacture of machinery and equipment | 4.7653 | 7.7 | 6.2 | 10.2 | 5.9 |
| Motor vehicles, trailers and semi-trailers | 4.8573 | 33.5 | 10.9 | 14.9 | 12.0 |
| Manufacture of other transport equipment | 1.7763 | 25.1 | 2.6 | 20.7 | 9.3 |
| Manufacture of furniture | 0.1311 | 0.7 | 18.1 | 1.1 | 3.8 |
| Other manufacturing | 0.9415 | -14.9 | -23.2 | -12.4 | -13.3 |
| MINING | 14.3725 | 6.9 | 4.3 | 3.1 | 0.8 |
| MANUFACTURING | 77.6332 | 8.4 | 4.8 | 6.0 | 5.0 |
| ELECTRICITY | 7.9943 | 6.3 | 5.1 | 2.3 | 1.1 |
| OVERALL IIP | 100.0000 | 8.0 | 4.8 | 5.2 | 4.1 |
Data Source: MOSPI (# - Apr-Feb)
With so much of IIP numbers, let us turn to some interesting insights that emerge from the IIP table for the last 3 months and for FY26 overall.
KEY TAKEAWAYS FOR INVESTORS FROM IIP DATA
- The big thrust to the IIP growth in February 2026 has come from domestic-driven sectors like basic metals, machinery & equipment, minerals, motor vehicles, trailers etc.
- Selected export-driven sectors like tobacco, wearing apparel, and other manufacturing continued to be under pressure in February 2026.
- Positive turnaround is visible in sectors like textiles, leather products, paper products, chemicals and chemical products.
- Sectors that saw loss of production momentum in February included minerals, metal products, computers, and electronics. There were impacted by supply chain constraints.
The global trade and manufacturing story has undergone a big shift since the US-Iran war started on 28-February. The dent in March may not be too sharp, but if the war continues for longer, then the impact would be more visible in the FY26 IIP data!
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