December IIP Data: Industrial Output Hits Highest Level In Over Two Years

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.

Source : PTI

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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.

(Disclaimer: This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

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