Source The economics Times
India’s industrial output recorded its fastest growth in over two years in December, rising 7.8%, signaling a strong rebound in manufacturing and allied sectors toward the end of 2025. The data, released under the Index of Industrial Production (IIP), reflects improved demand conditions and better performance across key segments of the economy.
Manufacturing, which carries the largest weight in the IIP, was the main driver of growth, posting a robust expansion during the month. Capital goods output also showed significant improvement, indicating higher investment activity and increased capacity creation by industries. Consumer durables registered healthy growth as well, suggesting a pickup in consumer spending ahead of the festive and year-end season.
Electricity generation and mining output contributed positively, adding to the overall momentum in industrial activity. Economists note that easing input costs, stable supply chains, and government-led infrastructure spending played a crucial role in supporting industrial growth during the period.
On a year-on-year basis, December’s 7.8% growth marks the highest industrial expansion since late 2023, offering relief after months of uneven performance. Analysts believe this strong finish could provide a positive base for industrial activity in the coming quarters, though global uncertainties and inflationary pressures remain key risks to watch.
Overall, the latest IIP figures underscore a strengthening industrial recovery, boosting optimism about India’s near-term economic outlook.
