IIP Data For December 2025: India’s industrial output growth picked up sharply to a more than two-year high of 7.8 per cent in December 2025, supported by a broad-based improvement across mining, manufacturing
and electricity, official data released on Wednesday showed.
Factory output, as measured by the Index of Industrial Production (IIP), had grown by 3.7 per cent in December 2024.
“Industry momentum further strengthened in December 2025 as the Index of Industrial production rose by 7.8 per cent, reaching its highest level in over 2 years, after registering a high growth of 7.2 per cent (RE) in November 2025,” according to an official statement.
The National Statistics Office (NSO) also revised industrial production growth for November 2025 upward to 7.2 per cent from the provisional estimate of 6.7 per cent released earlier.
Sector-wise data showed that manufacturing output expanded by 8.1 per cent in December 2025, a significant acceleration from 3.7 per cent in the year-ago month. Mining output rose by 6.8 per cent, compared with a growth of 2.7 per cent in December 2024.
Electricity generation increased by 6.3 per cent during the month, broadly in line with the 6.2 per cent growth recorded in the corresponding period last year.
For the April-December period of FY26, industrial production growth moderated to 3.9 per cent, compared with 4.1 per cent in the same period of the previous financial year.
Manufacturing output, the largest component of the index, grew by 8.1 per cent in December, slightly lower than the 8.5 per cent recorded in November, indicating steady factory activity despite an uncertain global environment. Mining output increased by 6.8 per cent, while electricity generation rose 6.3 per cent, reflecting sustained demand from both industrial and household consumers.
Within the use-based classification, capital goods production expanded by 8.1 per cent, pointing to continued momentum in investment demand, even though growth eased from the double-digit pace seen in November. Infrastructure and construction goods remained a key driver, registering a robust 12.1 per cent rise, supported by public capital expenditure and ongoing project execution.
Consumer demand showed signs of improvement during the month. Output of consumer durables jumped 12.3 per cent, signalling stronger spending on discretionary items such as appliances and electronics. Consumer non-durables, which had remained volatile for much of the year, grew by 8.3 per cent, reversing the weakness observed in several earlier months.
Primary goods output rose 4.4 per cent, while intermediate goods production increased by 7.5 per cent, suggesting improving traction across the manufacturing value chain and easing supply-side constraints.
