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India’s industrial activity gathered strong momentum in December 2025, with the Index of Industrial Production (IIP) rising 7.8 per cent, marking the fastest pace of growth in 26 months, according to official data released on Wednesday.
The sharp acceleration was driven by robust performance across manufacturing, mining, and electricity generation, reflecting broad-based strength in industrial activity towards the end of the calendar year. IIP growth improved from 6.7 per cent in November, which has now been revised upward to 7.2 per cent, the National Statistics Office (NSO) said.
“IIP growth in December 2025 improved to a robust 7.8 per cent yoy from 7.2 per cent yoy in the previous month, supported by a low base effect (December 2024: 3.7 per cent yoy) and GST rate rationalisation. The growth remained reasonable across the broad sectors, with the the manufacturing sector leading from the front with a robust growth of 8.1 per cent yoy in December 2025.
The YoY growth in the other two sectors, namely electricity and mining, touched an 18-month and a nine-month high, respectively, in December 2025, thereby pulling the overall factory output growth to a 26-month high,” Paras Jasrai, Associate Director, India Ratings and Research, said.
Sector-wise, manufacturing output, which carries the largest weight in the index, expanded 8.1 per cent in December, compared with 3.7 per cent in the year-ago period. Mining activity also strengthened, growing 6.8 per cent, up from 2.7 per cent in December 2024. Electricity generation rebounded sharply, rising 6.3 per cent, after contracting in the previous month and broadly matching the 6.2 per cent growth seen a year earlier.
Use-based classification data pointed to widespread improvement across categories. Primary goods output rose 4.4 per cent, up from 2.0 per cent in November. Capital goods production expanded 8.1 per cent, though lower than 10.4 per cent in the previous month, while infrastructure and construction goods continued to show strong momentum, growing 12.1 per cent.
On the consumption front, consumer durables output accelerated to 12.3 per cent from 10.3 per cent, while consumer non-durables growth improved to 8.3 per cent from 7.3 per cent, indicating resilient demand conditions through the month.
An official statement said industry momentum “further strengthened” in December, with IIP reaching its highest level in over two years. However, for the April–December period of FY26, industrial production growth moderated to 3.9 per cent, compared with 4.1 per cent in the corresponding period a year earlier.
The December data suggests that India’s industrial sector ended 2025 on a firm footing, supported by steady manufacturing activity, infrastructure spending, and improving consumer demand.
The sharp acceleration was driven by robust performance across manufacturing, mining, and electricity generation, reflecting broad-based strength in industrial activity towards the end of the calendar year. IIP growth improved from 6.7 per cent in November, which has now been revised upward to 7.2 per cent, the National Statistics Office (NSO) said.
“IIP growth in December 2025 improved to a robust 7.8 per cent yoy from 7.2 per cent yoy in the previous month, supported by a low base effect (December 2024: 3.7 per cent yoy) and GST rate rationalisation. The growth remained reasonable across the broad sectors, with the the manufacturing sector leading from the front with a robust growth of 8.1 per cent yoy in December 2025.
The YoY growth in the other two sectors, namely electricity and mining, touched an 18-month and a nine-month high, respectively, in December 2025, thereby pulling the overall factory output growth to a 26-month high,” Paras Jasrai, Associate Director, India Ratings and Research, said.
Sector-wise, manufacturing output, which carries the largest weight in the index, expanded 8.1 per cent in December, compared with 3.7 per cent in the year-ago period. Mining activity also strengthened, growing 6.8 per cent, up from 2.7 per cent in December 2024. Electricity generation rebounded sharply, rising 6.3 per cent, after contracting in the previous month and broadly matching the 6.2 per cent growth seen a year earlier.
Use-based classification data pointed to widespread improvement across categories. Primary goods output rose 4.4 per cent, up from 2.0 per cent in November. Capital goods production expanded 8.1 per cent, though lower than 10.4 per cent in the previous month, while infrastructure and construction goods continued to show strong momentum, growing 12.1 per cent.
On the consumption front, consumer durables output accelerated to 12.3 per cent from 10.3 per cent, while consumer non-durables growth improved to 8.3 per cent from 7.3 per cent, indicating resilient demand conditions through the month.
An official statement said industry momentum “further strengthened” in December, with IIP reaching its highest level in over two years. However, for the April–December period of FY26, industrial production growth moderated to 3.9 per cent, compared with 4.1 per cent in the corresponding period a year earlier.
The December data suggests that India’s industrial sector ended 2025 on a firm footing, supported by steady manufacturing activity, infrastructure spending, and improving consumer demand.
