In December 2025, India’s industrial sector demonstrated significant expansion, with the Index of Industrial Production (IIP) reaching a 7.8% growth rate. This figure represents the highest pace of industrial activity in over two years. According to data released by the National Statistics Office (NSO), this performance follows a revised growth rate of 7.2% for November 2025, For comparison, the factory output in December 2024 stood at a much lower 3.7%.
Sector-Specific Performance
The surge in industrial activity was primarily driven by the manufacturing, mining, and power sectors.
Manufacturing: This sector, a critical component of the IIP, grew by 8.1% in December 2025, more than doubling the 3.7% growth recorded in the same month the previous year.
Within this category, specific industries saw substantial gains. Computer, electronic, and optical products led the way with a 34.9% increase, followed by motor vehicles and trailers at 33.5%, and other transport equipment at 25.1%.
Mining: Output in the mining sector rose by 6.8%, compared to a 2.7% increase in December 2024.
Power: Electricity generation maintained a steady upward trajectory, growing by 6.3% compared to 6.2% in the year-ago period.
Use-Based Classification and Contributors
The NSO’s use-based classification provides a detailed look at how different types of goods performed. Infrastructure and construction goods saw a 12.1% increase, while consumer durables experienced a 12.3% rise. Consumer non-durables such as food items and toiletries and capital goods also recorded growth of 8.3% and 8.1%, respectively. Primary goods grew by 4.4% and intermediate goods by 7.5%.
Among the top contributors to the overall IIP growth were the manufacturing of basic metals (up 12.7%), motor vehicles (up 33.5%), and pharmaceutical and medicinal products (up 10.2%). Notably, 16 out of the 23 industry groups within the manufacturing sector reported positive growth during this period.
Fiscal Year Context
Despite the strong performance in the final month of the calendar year, the cumulative growth for the April–December period of the 2025–26 fiscal year (FY26) showed a slight deceleration. The growth rate for these nine months was 3.9%, marginally lower than the 4.1% recorded during the corresponding period in the previous fiscal year.
The original official statistics for India’s Industrial Production (IIP) for December 2025 are hosted by the Ministry of Statistics and Program Implementation (MoSPI). The data was officially released on January 28, 2026
A Quick Reference from the Document:
| Category | Index (Dec 2025) | Growth Rate (%) |
| General IIP | 170.3 | 7.8% |
| Manufacturing | 169.9 | 8.1% |
| Mining | 153.0 | 6.8% |
| Electricity | 204.9 | 6.3% |
