Industrial Growth Hits Over Two-Year High As IIP Records 7.8% Expansion In December 2025
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Ministry of Statistics & Programme Implementation (MoSPI) | National Statistical Office (NSO)
India’s industrial output reached a significant milestone in December 2025, with the Index of Industrial Production (IIP) recording a growth of 7.8%. This expansion represents the highest growth rate in over two years, surfacing after a robust performance in November 2025, which saw its own figures revised upward to 7.2% (RE) from an initial estimate of 6.7%. The surge is attributed to a broad-based recovery across the primary pillars of the index: Manufacturing (8.1%), Mining (6.8%), and Electricity (6.3%).
High-Growth Manufacturing and Sectoral Drivers
The manufacturing sector, which holds the largest weight in the IIP, was propelled by exceptional performance in technology and transport-related industries:
Digital and Electronics: The manufacture of computer, electronic, and optical products grew by a massive 34.9%, reflecting a strong move up the global value chain.
Automotive Sector: The production of motor vehicles, trailers, and semi-trailers saw a surge of 33.5%, indicating robust domestic and export demand.
Logistics Equipment: Other transport equipment recorded a healthy expansion of 25.1%.
Broad-Based Recovery: Out of 23 industry groups in the manufacturing sector, 16 recorded positive growth during the month.
Use-Based Classification and Contribution
The end-use classification reflects significant momentum in infrastructure and consumption:
Infrastructure/Construction Goods: This segment led the growth at 12.1%.
Consumer Durables: Production increased significantly by 12.3%.
Other Key Segments: Capital Goods grew by 8.1%, Intermediate Goods by 7.5%, and Consumer Non-durables by 8.3%. Primary Goods recorded a growth of 4.4%.
Top Contributors: Based on use-based classification, the top three positive contributors to the growth of IIP for December 2025 were Infrastructure/Construction Goods, Primary Goods, and Intermediate Goods..
What is the significance of the “Revised Estimate” (RE) in IIP reporting? A Revised Estimate is an updated growth figure issued one month after the initial Quick Estimate. It incorporates more complete data from a wider base of responding industrial units, providing a more accurate reflection of actual production. In this instance, the upward revision of November’s growth from 6.7% to 7.2% indicates that industrial activity was stronger than initially captured during the first round of data collection.
Policy Relevance
The December data signals that India’s industrial sector is entering a phase of high-growth stability, moving past previous festive-season volatility.
Investment Sentinel: The double-digit growth in Capital Goods and Infrastructure Goods suggests a sustained synergy between public spending and industrial capacity expansion.
Technological Pivot: The massive growth in electronics and optical products underscores the success of sector-specific incentives in transforming India into a high-tech manufacturing hub.
Data-Driven Governance: The significant upward revision of November’s data highlights the importance of dynamic regulatory monitoring, allowing policymakers to adjust economic outlooks based on refined industrial intelligence.
Follow the full report here: IIP December 2025