India's industrial output rises to 7.8% in Dec 2025 against 7.2% in Nov

India’s industrial output, as measured by the Index of Industrial Production (IIP), stood at 7.8 per cent in December 2025, reaching its highest level in over two years, after registering a high growth of 7.2 per cent (revised estimate) in November 2025, data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed on Wednesday. 

 

All three major sectors showed positive growth in December last year. Mining output increased by 6.8 per cent, while manufacturing recorded a growth of 8.1 per cent. Electricity generation also rose by 6.3 per cent during the month.

Manufacturing drives industrial growth

The manufacturing sector remained the biggest contributor to growth. Out of 23 industry groups, 16 recorded positive growth in December 2025 over the same month last year.

 

The robust pace of growth in December last year pushed back against concerns that aggressive tariff hikes by the US government would drive a sustained slowdown in the Indian economy, especially as goods producers are likely paying for more expensive fuel after the US imposed duties on major Russian oil producers and distributors.

Sector-wise growth

The strongest performers were basic metals, which grew 12.7 per cent, motor vehicles, trailers and semi-trailers, which expanded 33.5 per cent, and pharmaceuticals, which recorded a 10.2 per cent rise.

 

Growth in the basic metals segment was driven by higher output of alloy steel flat products, MS slabs, and steel pipes and tubes.

 

In the automobile sector, increased production of axles, auto components, spares and accessories, and commercial vehicles helped push growth.

 

For pharmaceuticals, strong production of veterinary vaccines, digestive enzymes and antacids, and vitamin Active Pharmaceutical Ingredients (APIs) and formulations supported the sector’s performance.

Infrastructure, consumer demand lead growth

On a year-on-year basis, infrastructure and construction goods grew by 12.1 per cent, while consumer durables increased by 12.3 per cent. Capital goods rose by 8.1 per cent, intermediate goods by 7.5 per cent, and consumer non-durables by 8.3 per cent. Primary goods recorded a growth of 4.4 per cent.

 

Based on use-based classification, infrastructure and construction goods, primary goods, and intermediate goods were the top contributors to industrial growth in December 2025.