IIP data: Industrial output jumps to over two-year high of 7.8% in December on broad-based recovery

India’s industrial production growth accelerated to a more than two-year high of 7.8% in December 2025, driven by strong performances across mining, manufacturing and electricity, official data released on Wednesday showed.

Factory output, measured by the Index of Industrial Production (IIP), had grown 3.7% in December 2024, PTI reported.

“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% (RE) in November 2025,” an official statement said.

The National Statistics Office (NSO) also revised the industrial production growth for November 2025 upwards to 7.2% from the provisional estimate of 6.7% released earlier.

According to the data, manufacturing output — the largest component of the IIP — expanded by 8.1% in December 2025, compared with a growth of 3.7% in the same month a year earlier.

Mining sector output rose by 6.8% during the month, up from a growth of 2.7% in December 2024.

Electricity generation recorded a growth of 6.3% in December 2025, marginally higher than the 6.2% expansion seen in the year-ago period.

However, on a cumulative basis, industrial production growth moderated during the April–December period of FY26. The IIP grew 3.9% during the nine-month period, compared with 4.1% growth recorded in the corresponding period of the previous financial year.