India’s Index of Industrial Production (IIP) growth accelerated sharply in December, rising to 7.8%, up from 6.7% in the previous month, marking the highest
growth in 26 months.
Sector-wise, manufacturing output, which carries the largest weight in the index, grew 8.1%, slightly higher than 8% in November. Mining activity also strengthened, expanding 6.8% compared with 5.4% a month earlier. Electricity generation saw a notable rebound, growing 6.3% after contracting 1.5% in the previous month.
Use-based classification showed broad improvement. Primary goods growth rose to 4.4% from 2%, while capital goods output expanded 8.1%, moderating from 10.4% in November. Infrastructure and construction goods maintained strong momentum at 12.1%.
On the consumption side, consumer durables growth accelerated to 12.3% from 10.3%, while consumer non-durables output improved to 8.3% from 7.3%, pointing to resilient demand conditions through the month.
