India's industrial output hit a two-year peak, with the Index of Industrial Production (IIP) growing by 7.8% in December 2025. The surge was led by an 8.1% rise in manufacturing, along with significant growth in mining and electricity.

India's Index of Industrial Production (IIP) recorded a growth of 7.8 per cent for the month of December 2025, according to official data released on Wednesday. Reaching its highest level in over two years, after registering a high growth of 7.2 per cent in November 2025, the IIP growth in December was driven by a surge in Manufacturing (8.1%), mining (6.8%) and electricity (6.3%).

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Sectoral and Manufacturing Highlights

According to the data released by the Ministry of Statistics and Programme Implementation, the IIP for Mining, Manufacturing and Electricity for December stands at 153.0, 169.9 and 204.9 respectively.

Within the manufacturing sector, 16 out of 23 industry groups recorded a positive growth in December 2025 over December 2024. The top three positive contributors for the month of December 2025 are "manufacture of basic metals" (12.7%), "manufacture of motor vehicles, trailers and semi-trailers" (33.5%) and "manufacture of pharmaceuticals, medicinal chemical and botanical products" (10.2%).

Use-Based Classification Analysis

"As per the use-based classification, the indices stand at 164.6 for Primary Goods, 124.0 for Capital Goods, 182.8 for Intermediate Goods and 219.1 for Infrastructure/ Construction Goods for the month of December 2025. The indices for Consumer durables and Consumer non-durables stand at 139.0 and 180.7 respectively," a release said.

The corresponding growth rates of IIP as per Use-based classification in December 2025 over December 2024 are 4.4 per cent in Primary goods, 8.1 per cent in Capital goods, 7.5 per cent in Intermediate goods, 12.1 per cent in Infrastructure/ Construction Goods, 12.3 per cent in Consumer durables and 8.3 per cent in Consumer non-durables.

Additionally, based on use-based classification, the top three positive contributors to the growth of IIP for the month of December 2025 are Infrastructure/ construction goods, Primary goods and Intermediate goods.

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