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India's Industrial Growth Hits 2-Year High at 7.8% in December

India's industrial output surged by 7.8% year-on-year in December 2025, marking the highest growth rate in over two years. This robust performance was driven by strong showings in manufacturing, mining, and electricity sectors. The capital goods segment grew by 8.1%, indicating rising business investment, while consumer durables saw a sharp 12.3% increase in production. The growth is attributed to government infrastructure projects and post-GST demand.

Key Points: India's Industrial Production Surges 7.8% in December

  • 7.8% IIP growth is a 2-year high
  • Manufacturing leads with 8.1% expansion
  • Capital goods output rises 8.1%, signaling investment
  • Consumer durables see strong 12.3% growth
2 min read

India's industrial growth surges to 2-year high of 7.8 per cent in December

India's IIP grew 7.8% in Dec 2025, a 2-year high, driven by strong manufacturing, mining, and electricity sectors.

"The manufacturing sector recorded an 8.1 per cent growth in December - Ministry of Statistics"

New Delhi, Jan 28

India's industrial production surged by 7.8 per cent in December 2025, reaching its highest level in over 2 years, driven by a robust across-the-board growth in the manufacturing, mining, and electricity sectors, according to figures released by the Ministry of Statistics on Wednesday.

This was the second consecutive month of strong year-on-year growth in the country's index of industrial production (IIP) as it came on the back of a 7.2 per cent acceleration in November 2025.

The manufacturing sector recorded an 8.1 per cent growth in December, with 16 out of 23 industry groups recording a positive growth during the month. The top three contributors include the manufacture of basic metals, motor vehicles, pharmaceuticals, and chemicals.

In the industry group "Manufacture of basic metals", "Flat products of Alloy Steel", "MS slabs", and "Pipes and tubes of Steel" have shown significant contribution to overall growth.

In the industry group "Manufacture of pharmaceuticals, medicinal chemical, and botanical products", item groups "Vaccine for veterinary medicine", "Digestive enzymes and antacids, API & formulations of vitamins" have shown a significant contribution to growth.

The mining sector has bounced back with a growth of 6.8 per cent in December compared to the same month of the previous year, while the electricity sector also recorded a strong growth of 6.3 per cent.

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, shot up by 8.1 per cent over the same month of the previous year. This segment reflects the real investment taking place in the economy, which has a multiplier effect on the creation of jobs and incomes going ahead.

The consumer durables sector, comprising white goods such as refrigerators, TV sets and washing machines, also recorded a double-digit growth of 12.3 per cent while non-durable goods such as soaps, cosmetics and processed foods clocked a robust 8.3 per cent growth during the month. The increase reflects the rising demand following the GST rate cuts, which have led to an increase in demand for consumer goods.

The infrastructure and construction sector clocked a strong 12.1 per cent growth during the month compared to the same month of the previous year on the back of big-ticket government projects being implemented in the highways, railways, and ports sectors.

- IANS

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Reader Comments

R
Rohit P
Great numbers on paper, but is this growth reaching the common man? The cost of living is still so high. I'll believe it when I see more stable prices for essentials and better salaries. The consumer durables growth is good, but what about affordability?
A
Aditya G
The surge in pharmaceuticals and basic metals is a very strong sign. It shows our manufacturing ecosystem is becoming resilient. The focus on 'Make in India' seems to be yielding results. Let's build on this!
S
Sarah B
As someone working in the renewable energy sector, I'm curious about the breakdown within the electricity growth. Is it driven by coal or are renewables finally getting a bigger share? The environmental angle is crucial for sustainable growth.
K
Karthik V
Double-digit growth in consumer durables and infrastructure! This is the kind of data that builds investor confidence. The GST cuts are clearly having a positive effect. Hope the government keeps up the policy support.
M
Meera T
Good to see mining bouncing back. But we must ensure this growth is responsible and doesn't come at the cost of our forests and tribal communities. Development needs to be inclusive and sustainable, not just about high numbers.

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