India’s industrial output growth surges to 7.8% in December
India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), surged to over a two-year high of 7.8 per cent in the month of December 2025 from 7.2 per cent in November 2025 and a 3.7 per cent in December 2024. The growth in factory output was supported by strong performances in mining, manufacturing and electricity. The National Statistics Office (NSO) has revised the industrial production growth for November 2025 to 7.2 per cent from the provisional estimate of 6.7 per cent released last month. The Quick Estimates of IIP stood at 170.3 for December 2025 against 158.7 in November 2025 and 158.0 in December 2024. During the April-December period of FY26, the country's industrial production grew by 3.9 per cent compared to 4.1 per cent in the corresponding period of last year.
Mining production surged by 6.8 per cent in the December month of 2025 against a growth of 2.7 per cent recorded a year ago and 5.8 per cent in November 2025. The manufacturing sector, which comprises the largest component of the index, expanded by 8.1 per cent in December 2025 against 3.7 per cent in the year-ago month, while the growth was 8.5 per cent in November 2025. Growth in electricity production inched up to 6.3 per cent in December 2025 against 6.2 per cent in the year-ago period and contraction of 1.5 per cent in November 2025. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2025 stood at 153.0, 169.9 and 204.9, respectively.
Within the manufacturing sector, 16 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in December 2025 over December 2024. The top three positive contributors for the month of December 2025 are - ‘Manufacture of basic metals’ (12.7%), ‘Manufacture of motor vehicles, trailers and semi-trailers’ (33.5%) and ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ (10.2%).
As per the use base classification, the output of primary goods rose to 4.4 per cent in December 2025 against 3.8 per cent growth a year earlier. The capital goods segment growth slipped to 8.1 per cent in December 2025 from 10.5 per cent in the year-ago period. The expansion in the intermediate goods segment was 7.5 per cent in the month under review against 6.4 per cent a year ago. Output of infrastructure/construction accelerated 12.1 per cent in December 2025, from 8.4 per cent in the year-ago period. Consumer durables (or white goods production) growth jumped to 12.3 per cent during the reporting month against 8.1 per cent in December 2024. In December 2025, consumer non-durables output stood at 8.3 per cent as against a contraction of 7.1 per cent a year ago.
The indices stood at 164.6 for Primary Goods, 124.0 for Capital Goods, 182.8 for Intermediate Goods and 219.1 for Infrastructure/ Construction Goods for the month of December 2025. Further, the indices for Consumer durables and Consumer non-durables stood at 139.0 and 180.7, respectively.
