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💡 IIP Insights: What India's Feb 2025 Growth Means for Your Portfolio

Created by Piyush Patel_ in Economic Update 12 Apr 2025

📊 Industrial Production in India – February 2025 Snapshot

🔍 Key Highlights

Overall IIP growth stood at 2.9% in February 2025 compared to 5.0% in January 2025.
The General Index rose to 151.3 in Feb 2025 from 147.1 in Feb 2024.
Sectoral growth:

Mining: +1.6%
Manufacturing: +2.9%
Electricity: +3.6%

📈 Sectoral Trend (YoY)

Sector	Growth (%) Feb 2025	Index (Feb 2025)
Mining	1.6%	141.9
Manufacturing	2.9%	148.6
Electricity	3.6%	194.0
Overall IIP	2.9%	151.3

Manufacturing continues to dominate the IIP composition, with the highest weight (77.6%).

🏭 2-Digit Industry Growth – Top & Bottom Performers

🥇 Top Performing Industries (YoY Feb 2025):

Industry	Growth (%)	Related Listed Companies
Manufacture of Electrical Equipment	9.3%	LT, BEL, HAL, Siemens, Havells
Computer, Electronic & Optical Products	10.6%	Dixon, Siemens, (Samsung, Apple from Unlisted)
Basic Metals	5.8%	JSW Steel, Tata Steel, SAIL
Motor Vehicles, Trailers	8.9%	Tata Motors, Maruti, M&M
Other Non-metallic Minerals	8.0%	Ultratech Cement, Shree Cement

❌ Worst Performing Industries:

Industry	Growth (%)	Related Listed Companies
Leather Products	-9.4%	MetroBrands, Relaxo, Bata Shoes
Paper Products	-9.1%	JK Paper, West Coast Paper
Printing & Media	-8.6%	Repro India, Thomson Press
Food Products	-6.1%	Nestlé, Britannia (context-specific)
Misc. Manufacturing	-6.3%	Small-cap players, largely unorganized

🧰 Use-Based Classification – Growth Analysis

Use Category	Growth (Feb YoY)	Insights
Capital Goods	8.2%	🔼 High infra investment and machinery demand – bullish for engineering firms
Infrastructure/Construction	6.6%	🏗️ Construction boom – good for cement, steel, heavy equipment
Consumer Durables	3.8%	🚗 Positive sign for white goods, appliances, auto
Consumer Non-Durables	-2.1%	📉 Weak rural demand or base effect drag
Intermediate Goods	1.5%	🔁 Sluggish inventory restocking cycle
Primary Goods	2.8%	🏭 Stable base sector growth

🧠 How Should Investors Interpret This?

Moderate IIP Growth: While Feb's IIP growth (2.9%) is lower than Jan's (5.0%), the trend still signals economic activity, especially in capital-intensive sectors.
Manufacturing Momentum: Key industrial sectors (autos, metals, electronics) show healthy momentum, indicating selective investment opportunities.
Infra Play: Capital goods and infrastructure goods categories grew over 6%, signaling government capex and housing boom are still strong levers.
Watch Consumer Non-Durables: A decline suggests cautious consumer sentiment or rural slowdown. FMCG investors should be watchful.
Look Beyond Headlines: Sectoral and 2-digit industry analysis is more important than the headline number. Investors can target outperforming micro-sectors.

📌 Conclusion

The IIP for February 2025 reinforces India's multi-speed industrial recovery. While headline growth is slower, the underlying strength in capital goods, infrastructure, and specific manufacturing segments is a bullish signal for long-term investors. Focus on sector rotation, align with government spending trends, and watch for cyclical plays in electronics, auto, and capital goods.