India’s Industrial Output Climbs 7.8% in December 2025, Highest in Over Two Years

India’s industrial growth picked up pace in December 2025 as the Index of Industrial Production (IIP) rose 7.8%, up from the revised 7.2% recorded in November, according to the Press Information Bureau. This represents the highest industrial expansion in more than two years and reflects strength across multiple sectors.

Manufacturing Leads The Surge 

Manufacturing was the top contributor, recording an 8.1% increase, while mining grew 6.8% and electricity 6.3%. Within manufacturing, the strongest performers were computer, electronic and optical products (34.9%), motor vehicles, trailers and semi-trailers (33.5%), and other transport equipment (25.1%).

Of the 23 NIC-2-digit manufacturing groups, 16 recorded positive growth compared with December 2024. The top contributors were basic metals (12.7%), motor vehicles and trailers (33.5%), and pharmaceuticals and medicinal products (10.2%), supported by items such as alloy steel products, commercial vehicles, auto components, vaccines, digestive enzymes, and vitamin formulations.

Use-based Indices Reflect Broad-based Strength

On a use-based classification, infrastructure and construction goods rose 12.1%, consumer durables 12.3%, and consumer non-durables 8.3%. Capital goods increased 8.1%, intermediate goods 7.5%, and primary goods 4.4%, signalling strength across both production and consumption-linked sectors.

The overall IIP stood at 170.3 in December 2025, up from 158.0 a year ago, with sectoral indices of 153.0 for mining, 169.9 for manufacturing, and 204.9 for electricity.

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