India’s industrial sector showed strong momentum in December 2025. The Index of Industrial Production (IIP) grew by 7.8%, marking the highest growth in more than two years. This follows a revised growth of 7.2% in November 2025, showing continued strength in the economy.
What is the Index of Industrial Production (IIP)?
The IIP measures the performance of India’s industrial sector. It tracks output from factories, mines, and power generation units. It is released on the 28th of every month and revised later as more data becomes available.
Key Highlights of IIP – December 2025
- IIP Growth Rate: 7.8%
- Previous Month (Nov 2025 Revised): 7.2%
- IIP Index Level: 170.3 (vs 158.0 in Dec 2024)
- Highest industrial momentum in 2+ years
Sector-wise Growth in December 2025
| Sector | Growth Rate | Index Level |
|---|---|---|
| Manufacturing | 8.1% | 169.9 |
| Mining | 6.8% | 153.0 |
| Electricity | 6.3% | 204.9 |
Manufacturing was the biggest driver of growth in December.
Top Performing Manufacturing Industries
The fastest-growing industries inside manufacturing were:
- Computer, electronic & optical products: 34.9%
- Motor vehicles, trailers & semi-trailers: 33.5%
- Other transport equipment: 25.1%
Other strong contributors included:
- Basic metals: 12.7%
- Pharmaceuticals: 10.2%
Products That Drove Industrial Growth
Some key products that boosted output:
- Alloy steel flat products
- MS slabs
- Steel pipes and tubes
- Auto components and axles
- Commercial vehicles
- Veterinary vaccines
- Digestive enzymes and PPI drugs
- Vitamin APIs and formulations
Use-Based Classification – Which Segment Grew the Most?
| Category | Growth Rate | Index Level |
|---|---|---|
| Infrastructure / Construction Goods | 12.1% | 219.1 |
| Consumer Durables | 12.3% | 139.0 |
| Capital Goods | 8.1% | 124.0 |
| Consumer Non-Durables | 8.3% | 180.7 |
| Intermediate Goods | 7.5% | 182.8 |
| Primary Goods | 4.4% | 164.6 |
Infrastructure goods and consumer durables were the biggest growth drivers, showing strong construction activity and consumer demand.
How Broad-Based Was the Growth?
Out of 23 manufacturing industry groups, 16 recorded positive growth. This indicates that the recovery is not limited to one or two sectors but spread across industries.
Data Reliability
- December 2025 weighted response rate: 89.81%
- November 2025 final response rate: 92.91%
These numbers show strong data coverage, making the estimates reliable.
Why This IIP Growth Matters
This 7.8% growth signals:
- Stronger manufacturing recovery
- Rising infrastructure activity
- Improving vehicle production
- Healthy pharma and electronics output
- Support for India’s GDP growth outlook
Consistent industrial growth often leads to higher employment, investment, and corporate earnings.
When is the Next IIP Data Release?
The January 2026 IIP data will be released on 2 March 2026.
Quick Summary
India’s industrial output expanded strongly in December 2025 with 7.8% growth, led by manufacturing, infrastructure goods, automobiles, electronics, and pharmaceuticals. The data shows broad-based industrial momentum and improving economic strength.
