India’s industrial production growth, as measured by the Index of Industrial Production (IIP), surged to its highest level in over two years at 7.8 per cent in December 2025 on an annual basis. The IIP continued its rising trend last month, edging higher from the upwardly revised rate of 7.2 per cent in November. 

 

According to the data released by the Ministry of Statistics and Programme Implementation, growth in industrial output was driven by across the board surge in its major components. Manufacturing output, which carries the largest weight in the index, grew 8.1 per cent, led by a significant rise in industries including computer, electronic and optical products, motor vehicles, trailers and semi-trailers, and other transport equipment.

 

Mining activity also strengthened, expanding 6.8 per cent. Meanwhile, Electricity staged a rebound, climbing 6.3 per cent in December, from a contraction of 1.5 per cent in November.