India's industrial output rises to 7.8% in Dec 2025 against 7.2% in Nov
- IBEF
- January 29, 2026
India’s industrial production growth accelerated to over a two-year high of 7.8% in December 2025, compared to 3.7% in the same month last year, according to data released published by the Ministry of Statistics and Programme Implementation (MoSPI), Index of Industrial Production (IIP) showing continued momentum of 7.2% up from the previous month of November in 2025. The positive performance was attributed to a broad-based increase across all three major sectors of manufacturing at 8.1%, mining at 6.8% and electricity generation rebounding to 6.3 % after having contracted the previous month. In the manufacturing sector, of the 23 registered industry groups, 16 had posted positive levels of growth, while the largest contributory product groups were computer, electronic and optical products at 34.9%, motor vehicles at 33.5% and basic metals at 12.7%.
In the usage-based view, the infrastructure and construction categories experienced the highest growth rate, at 12.1%, with consumer durables just behind at 12.3% indicating strong discretionary spending and investment continued through the year. Capital goods are also indicative of demand for investments, growing by 8.1%, while intermediate goods grew 7.5 percent. For April to December of 2025-26, the industrial sector was up 3.9% in total cumulative growth. Industry experts indicated that the solid performance toward the end of the year has lessened fears of a global recession due to continued supportive government policies and positive domestic demand. The Indian government estimates that Gross Domestic Product (GDP) will grow 7.4 % from fiscal year 2025-26 based on this strong performance across both manufacturing and the total industrial sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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