New Delhi

India’s industrial activity gathered strong momentum in December 2025, with factory output rising at its fastest pace in more than two years, driven by broad-based growth across manufacturing, mining and power sectors, official data showed on Wednesday.

According to figures released by the National Statistics Office (NSO), the Index of Industrial Production (IIP) climbed 7.8 per cent in December 2025, a sharp acceleration from the 3.7 per cent growth recorded in the same month last year.

The NSO said the improvement reflected strengthening industrial momentum, following a robust performance in November. Industrial output growth for November 2025 has been revised upward to 7.2 per cent from the earlier provisional estimate of 6.7 per cent.

With the latest reading, December marked the strongest monthly IIP expansion since late 2023.

Despite the December surge, overall industrial growth during the first nine months of the current financial year moderated slightly. IIP growth during April–December of FY26 stood at 3.9 per cent, compared with 4.1 per cent in the corresponding period of the previous year.

Manufacturing activity — the largest component of the index — rose sharply by 8.1 per cent in December, more than double the 3.7 per cent growth seen a year earlier. Among manufacturing segments, the fastest expansion was recorded in computer, electronic and optical products, which surged nearly 35 per cent. This was followed by motor vehicles, trailers and semi-trailers with growth of over 33 per cent, and other transport equipment, which expanded by about 25 per cent.

Mining output also showed a marked improvement, growing 6.8 per cent in December, compared to a 2.7 per cent increase in the year-ago period.

Electricity generation registered a steady rise of 6.3 per cent during the month, broadly in line with the 6.2 per cent growth seen in December 2024.

Under the use-based classification, infrastructure and construction goods posted a strong expansion of 12.1 per cent, while consumer durables output jumped 12.3 per cent. Capital goods output rose 8.1 per cent, intermediate goods by 7.5 per cent, primary goods by 4.4 per cent, and consumer non-durables by 8.3 per cent.

The NSO said infrastructure and construction goods, primary goods and intermediate goods emerged as the largest contributors to overall IIP growth in December.

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Within manufacturing, 16 of the 23 industry groups recorded positive growth during the month. Key contributors included basic metals, which grew 12.7 per cent, motor vehicles and related segments with growth of 33.5 per cent, and pharmaceuticals and medicinal products, which expanded by 10.2 per cent.