India's industrial production growth surged to its highest level in more than two years during December 2025, according to official data released on Wednesday. The Index of Industrial Production (IIP) recorded a robust expansion of 7.8% last month, significantly outpacing the 3.7% growth witnessed in December 2024.
Strong Sectoral Performance Drives Growth
The impressive industrial output figures were propelled by substantial gains across all three major sectors. Manufacturing output, which constitutes the largest component of the IIP, expanded by 8.1% in December 2025 compared to a growth of just 3.7% during the same month a year earlier.
The mining sector also demonstrated remarkable improvement, with output rising by 6.8% during the month, a substantial increase from the 2.7% growth recorded in December 2024. Electricity generation maintained its steady performance, recording a growth of 6.3% in December 2025, marginally higher than the 6.2% expansion seen in the year-ago period.
Upward Revision for November Figures
The National Statistics Office (NSO) revised the industrial production growth for November 2025 upwards to 7.2% from the provisional estimate of 6.7% released earlier. This revision indicates that industrial momentum had already been strengthening in the preceding month.
"Industry momentum further strengthened in December 2025 as the Index of Industrial Production rose by 7.8%, reaching its highest level in over two years, after registering a high growth of 7.2% in November 2025," an official statement confirmed.
Cumulative Growth Shows Moderation
Despite the strong monthly performance, industrial production growth moderated on a cumulative basis during the April–December period of FY26. The IIP grew 3.9% during these nine months, compared with the 4.1% growth recorded in the corresponding period of the previous financial year.
This data suggests that while December 2025 witnessed exceptional industrial performance, the broader trend across the fiscal year shows more moderate expansion. The contrast between the monthly surge and cumulative moderation highlights the evolving dynamics of India's industrial sector as it navigates economic challenges and opportunities.
