FX.co ★ India Industrial Output Growth Slows in February

India experienced a notable slowdown in industrial production growth, which dropped to 2.9% year-on-year in February 2025. This is a significant fall from January's revised figure of 5.2% and is below the anticipated market expectations of 4.0%. It marks the slowest expansion since August, largely due to reduced momentum across various critical sectors. Specifically, the output in coke and refined petroleum products rose minimally by 0.5%, a stark contrast to the 8.6% growth in January. Likewise, the increase in basic metals output tapered to 5.8% from the previous 6.7%.

Other sectors too mirrored this downtrend: textiles posted a modest growth of 2.4%, down from 3.6%; rubber and plastic products saw a 4.4% increase compared to 5.2% previously; and other non-metallic mineral products grew by 8.0%, compared to the earlier 10.3%. Growth in fabricated metal products, excluding machinery and equipment, slowed to 6.7% from 9.6%, and electrical equipment production decreased significantly to 9.3% from 21.6%. Additionally, machinery and equipment not elsewhere classified (n.e.c.) showed a lower growth rate at 3.1% compared to 4.8%.

The data also revealed a contraction in certain areas, notably food products (-6.1% versus a slight rise of 0.1%) and chemicals and chemical products, which fell by 2.9% after having increased by 2.6% previously.