Current Affairs - Economy - Discussion

In February 2025, India's Index of Industrial Production (IIP) grew by just 2.9%, its weakest performance in six months. This slowdown was driven by broad-based sluggishness across mining, manufacturing, and electricity sectors, compounded by a high base effect from the previous year. While the consensus forecast by Reuters had predicted a 4% growth, the actual figure undershot expectations. Mining rose only 1.6%, manufacturing increased 2.9%, and electricity output was up by 3.6%. Among use-based categories, capital goods showed robust growth at 8.2%, but most other segments—including consumer non-durables—faltered, reflecting a cooling in industrial momentum.