India's industrial output, based on the Index of Industrial Production (IIP), posted a 2.9 per cent growth in February this year compared to the same month of the previous year, according to data released by the Ministry of Statistics on Friday.

The data showed that the manufacturing sector, which provides quality jobs for the country’s young graduates passing out of the country’s universities and engineering institutes, recorded a 2.9 per cent growth in February over the same month last year.

Mining production grew by 1.6 per cent during the month, and electricity production increased by 3.6 per cent during the month.

Within the manufacturing sector, 14 out of 23 industry groups have recorded a positive growth in February 2025 over February 2024. The top three positive contributors for the month of February 2025 are – "Manufacture of basic metals" (5.8 per cent), "manufacture of motor vehicles, trailers and semi-trailers" (8.9 per cent) and "Manufacture of other non-metallic mineral products" (8.0 per cent).

In the industry group "Manufacture of basic metals", item groups "Flat products of Alloy Steel", "Pipes and tubes of Steel", "Bars and Rods of Mild steel" have shown significant contribution in growth.

Similarly, in the industry group "Manufacture of motor vehicles, trailers and semi-trailers", item groups "Auto components/ spares and accessories", "Axle", and "Commercial Vehicles" have shown significant contribution in growth.

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by 8.2 per cent in February. This segment reflects the real investment taking place in the economy which has a multiplier effect on the creation of jobs and incomes going ahead.

There was also a 3.8 per cent increase in the production of consumer durables such as electronic goods, refrigerators, and TVs, reflecting the higher consumer demand for these items amid rising incomes.

ICRA chief economist Aditi Nayar said the growth rate in February is slower than 5 per cent recorded in January due to the base effect. The performance of most of the available high frequency indicators improved in March 2025, including electricity generation and the mobility and transport-related indicators, such as GST e-way bill generation, port cargo traffic, diesel consumption, petrol consumption, and vehicle registrations. While steel consumption declined in March 2025, this was dampened by a high base, she added.