India’s Infrastructure Output Growth Slows To 2.3% In February

India’s infrastructure output grew by 2.3% year-on-year in February, compared to a revised 4.7% growth in January, according to data released by the government on March 20.

This is the slowest growth registered in three months, while the growth was at 2.1% in November 2025.

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Core Sector Performance Weakens

The index of eight core industries, which accounts for 40% of the Index of Industrial Production (IIP), showed mixed performance for the sectors in February.

Cement production rose 9.3% year-on-year, lower than the revised 11.3% growth in January. Steel output increased 7.2%, compared to 11.5% in the previous month.

Electricity generation growth slowed sharply to 0.5% year-on-year from 5.2% in January, indicating reduced momentum in power output.

Energy Segment Declines

Crude oil production decreased by 5.2% y-o-y in February compared to a decline of 5.8% y-o-y in January. Natural gas production decreased by 5%, similar to the previous month.

Refinery products decreased by 1% y-o-y, compared to no change in January, due to lower activity in the petroleum segment.

Other Sectoral Trends

Fertiliser production increased 3.4% year-on-year, slightly lower than 3.7% growth recorded in January. Coal output rose 2.3%, compared to 3.1% in the previous month.

The data shows a moderation in growth across multiple sectors within the core industries index.

Cumulative Growth Slows

For the April–February period of the current financial year, infrastructure output grew 2.9% year-on-year, compared to 4.4% growth in the same period of the previous year, according to official data.

Growth Moderation Reflects Broad Trends

The data from February shows a slowing down of the growth of infrastructure output when compared to previous months. Several sectors have reported lower growth rates or contraction. 

Variations in core sector output are due to changes in the industrial sector's performance across the energy segment.