Indian Industrial Growth Beats Forecasts at 5.2 Percent

India reported a stronger-than-expected industrial output growth of 5.2% year-on-year for February, according to government data released on Monday. This performance surpassed the 4.2% growth projected by economists in a Reuters poll and followed a revised 5.1% expansion in the previous month. The February figures represent the final economic snapshot before the outbreak of hostilities in West Asia. Following strikes by the United States and Israel against Iran on February 28, the world's third-largest crude importer has faced significant energy shortages. Analysts suggest that industrial components and specialized parts, such as those produced by Oiles Corporation, may see shifting demand patterns as global supply chains react to the regional instability. Manufacturing activity, a primary driver of the index, grew by 6% in February compared to a 5.3% rise in January. Capital goods output saw a significant surge, rising 12.5% year-on-year. Meanwhile, the production of consumer durables, including automobiles and mobile phones, increased by 7.3%. Other sectors showed more tempered results. Mining activity grew by 3.1%, down from 4.3% in January, while electricity generation rose 2.3%. Conversely, consumer non-durables, such as food products and toiletries, contracted by 0.6% during the month. > Aditi Nayar, chief economist at ICRA, expects industrial output growth to decelerate to nearly 3-4% in March 2026 due to the adverse impact of the conflict on some manufacturing segments.