India’s industrial production saw a significant increase of 7.8% in December 2025, marking its highest level in over 2 years. This growth was primarily fueled by a strong performance across the manufacturing, mining, and electricity sectors. December marked the second consecutive month of robust year-on-year growth in the country’s index of industrial production, following a 7.2% acceleration in November 2025.
The manufacturing sector specifically experienced an 8.1% growth in December, with 16 out of 23 industry groups posting positive growth figures during the month. Key contributors to this growth included the production of basic metals, motor vehicles, pharmaceuticals, and chemicals. Notably, in the “Manufacture of basic metals” industry group, items like “Flat products of Alloy Steel,” “MS slabs,” and “Pipes and tubes of Steel” significantly contributed to the overall growth.
In the mining sector, there was a notable rebound with a growth rate of 6.8% in December compared to the same period the previous year. Similarly, the electricity sector also showed a strong performance, recording a growth rate of 6.3%. The production of capital goods, essential machinery used in factories, surged by 8.1% year-on-year in December, indicating real investments in the economy that can have a positive impact on job creation and income generation.
Consumer durables, including items like refrigerators, TV sets, and washing machines, registered a substantial growth of 12.3%, while non-durable goods such as soaps, cosmetics, and processed foods also saw a robust 8.3% growth during the month. This increase in demand can be attributed to rising consumer interest following GST rate cuts, boosting the consumption of various goods. Additionally, the infrastructure and construction sector experienced a notable 12.1% growth in December compared to the same period the previous year, driven by significant government projects in the highways, railways, and ports sectors.
