India’s Factory Output Grows At Fastest Pace In Over 2 Years, Rises 7.8 Per Cent In December: Government Data

New Delhi, Jan 28: India's industrial production grew at an over two-year high pace of 7.8 per cent in December 2025 on the back of robust output in manufacturing, mining and power sectors, according to government data released on Wednesday. The factory output, measured in terms of the Index of Industrial Production (IIP), expanded by 3.7 per cent in December 2024.

NSO revises November numbers

"Industry momentum further strengthened in December 2025 as the IIP rose by 7.8 per cent, reaching its highest level in over 2 years, after registering a high growth of 7.2 per cent in November 2025," the National Statistics Office (NSO) said in a statement.

The NSO also revised the industrial production growth for November 2025 to 7.2 per cent from the provisional estimate of 6.7 per cent released last month.

Growth slows in April–December period

During the April–December period of FY26, the country's industrial production growth slowed to 3.9 per cent compared to 4.1 per cent in the same period a year ago.

Manufacturing, mining and power performance

According to the NSO data, the manufacturing sector's output grew by 8.1 per cent in December 2025 compared to 3.7 per cent in the year-ago month.

"In manufacturing, highest growth recording industries are computer, electronic and optical products (34.9 per cent), motor vehicles, trailers and semi-trailers (33.5 per cent) and other transport equipment (25.1 per cent)," it said.

Mining production rose by 6.8 per cent against a growth of 2.7 per cent recorded a year ago.

Power generation grew by 6.3 per cent in December 2025, compared to 6.2 per cent expansion in the year-ago period.

Use-based classification data

The corresponding growth rates of IIP as per use-based classification in December 2025 over December 2024 were recorded at 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.

Based on use-based classification, the top three positive contributors to the growth of IIP in December 2025 were infrastructure/construction goods, primary goods and intermediate goods.

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Key contributors within manufacturing

Within the manufacturing sector, 16 out of 23 industry groups recorded positive growth in December 2025 over the year-ago month.

The top three positive contributors to December 2025 IIP numbers included the manufacturing of basic metals (12.7 per cent), motor vehicles, trailers and semi-trailers (33.5 per cent) and pharmaceuticals, medicinal chemical and botanical products (10.2 per cent).

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