India's industrial output grows 7.8% in December 2025, highest in over two years

India’s industrial output growth accelerated to a more than two-year high of 7.8% in December, driven by across the board surge in manufacturing, mining and power generation, official data showed on Wednesday.

According to the Ministry of Statistics and Programme Implementation, the Index of Industrial Production (IIP) rose to 170.3 in December 2025 from 158.0 in the year-ago period.

The growth was higher than the revised 7.2% expansion recorded in November 2025.

"Industry momentum further strengthened in December 2025 as the Index of Industrial production rose by 7.8%, reaching its highest level in over 2 years, after registering a high growth of 7.2% (RE) in November 2025," an official statement said.

Manufacturing output, which accounts for the largest share in the index, grew by 8.1% during the month, while mining output rose by 6.8% and electricity generation increased by 6.3%.

Within manufacturing, the strongest gains were seen in computer, electronic and optical products, which surged 34.9%, followed by motor vehicles, trailers and semi-trailers at 33.5%, and other transport equipment at 25.1%.

Sixteen of the 23 manufacturing industry groups recorded positive growth during the month.

The top contributors were manufacture of basic metals, which grew 12.7%, manufacture of motor vehicles, trailers and semi-trailers with a 33.5% rise, and manufacture of pharmaceuticals, medicinal chemical and botanical products, which expanded 10.2%.

Under the use-based classification, the index for primary goods stood at 164.6, capital goods at 124.0, intermediate goods at 182.8 and infrastructure and construction goods at 219.1 in December 2025.

Consumer durables and consumer non-durables indices were recorded at 139.0 and 180.7, respectively.

The index for January 2026 is scheduled to be released on March 2, 2026.