Data Alert
India's IIP growth rises to 7.8% in Dec, highest since Oct 2023
This story was originally published at 16:55 IST on 28 January 2026
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--India Dec IIP growth 7.8% vs 3.7% year ago
--India Nov IIP growth revised to 7.2% vs 6.7% provisional
--India Dec IIP growth of 7.8% highest in 26 months
--India Apr-Dec IIP growth 3.9% vs 4.1% year ago
--India Dec mining sector output growth 6.8% vs 2.7% year ago
--India Dec manufacturing sector output growth 8.1% vs 3.7% year ago
--India Dec electricity sector output growth 6.3% vs 6.2% year ago
--India Dec primary goods output growth 4.4% vs 3.8% year ago
--India Dec capital goods output growth 8.1% vs 10.5% year ago
--India Dec intermediate goods output growth 7.5% vs 6.4% year ago
--India Dec infrastructure goods output growth 12.1% vs 8.4% year ago
--India Dec consumer durables output growth 12.3% vs 8.1% year ago
--India Dec consumer non-durables output growth 8.3% vs -7.1% year ago
NEW DELHI – India's industrial output, as measured by the Index of Industrial Production, grew higher than expected in December mainly because of higher growth in the manufacturing sector. Data released Thursday by the statistics ministry showed IIP growth rose to 7.8% in December, the highest since October 2023.
At 7.8%, December IIP growth was much higher than expected. Economists polled by Informist had estimated growth in industrial output at 5.0% in December. Industrial output had risen 3.7% in December 2024 and the November print was revised higher to 7.2% from 6.7% originally.
Sequentially, the general index rose 7.3% in December, the biggest month-on-month rise since March. Factory output has grown 3.9% in the first nine months of 2025-26 (Apr-Mar), slightly lower than 4.1% growth seen in the same period last year.
Manufacturing sector output, which has the highest weightage in the IIP, grew the quickest in December at 8.1%. However, this was lower than the 8.5% growth seen in November but still the second-quickest rate of growth since October 2023. Within manufacturing, "computer, electronic and optical products" grew the most at 34.9% in December, followed by "motor vehicles, trailers and semi-trailers" and "other transport equipment".
Mining sector output rose at an 18-month-high pace of 6.8% in December. Electricity production rose on year for the first time in three months and the rate of growth of 6.7% was the highest in nine months.
"High growth in November and December is reflective of the expected buoyancy expected post GST rationalisation as well as the investment activity in the country," Bank of Baroda Chief Economist Madan Sabnavis said in a note. "Revival in mining and electricity of over 6?ch is a positive sign as it goes along with a buoyant business environment."
Within the use-based classification, four of the six categories performed better in December compared with November. Consumer durables output rose 12.3% last month, the highest in 13 months. Consumer non-durables output rose 8.3% in December, the highest growth in 26 months. Growth in the production of infrastructure goods slowed in December from the previous month but remained high at 12.1%. Infrastructure goods output had grown 13.0% in November.
"It does look like that the industrial sector is on a positive trajectory with momentum being maintained which was observed in November," Sabnavis noted. "We may expect IIP growth to average around 4.5-5% for the year if this is maintained. A positive development was the rather good performance of the companies in the manufacturing sector in Q3 too which will get reflected in the GDP numbers."
The following tables detail year-on-year changes in industrial output in December:
| December 2025 | November 2025 | December 2024 | |
| General | 7.8% | 7.2% | 3.7% |
| Mining | 6.8% | 5.8% | 2.7% |
| Manufacturing | 8.1% | 8.5% | 3.7% |
| Electricity | 6.3% | -1.5% | 6.2% |
| Primary goods | 4.4% | 2.2% | 3.8% |
| Capital goods | 8.1% | 10.1% | 10.5% |
| Intermediate goods | 7.5% | 7.4% | 6.4% |
| Infrastructure/construction goods | 12.1% | 13.0% | 8.4% |
| Consumer durables | 12.3% | 11.2% | 8.1% |
| Consumer non-durables | 8.3% | 8.0% | (-)7.1% |
| Mining | Electricity | Manufacturing | General | |||||
| FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | |
| April | (-)0.2% | 6.8% | 1.7% | 10.2% | 3.1% | 4.2% | 2.6% | 5.2% |
| May | (-)0.1% | 6.6% | (-)4.7% | 13.7% | 3.2% | 5.1% | 1.9% | 6.3% |
| June | (-)8.7% | 10.3% | (-)1.2% | 8.6% | 3.7% | 3.5% | 1.5% | 4.9% |
| July | (-)7.2% | 3.8% | 3.7% | 7.9% | 6.0% | 4.7% | 4.3% | 5.0% |
| August | 6.6% | (-)4.3% | 4.1% | (-)3.7% | 3.8% | 1.2% | 4.1% | 0.0% |
| September | (-)0.4% | 0.2% | 3.1% | 0.5% | 5.6% | 4.0% | 4.6% | 3.2% |
| October | (-)1.8% | 0.9% | (-)6.9% | 2.0% | 2.0% | 4.4% | 0.5% | 3.7% |
| November | 5.8% | 1.9% | (-)1.5% | 4.4% | 8.5% | 5.5% | 7.2% | 5.0% |
| December | 6.8% | 2.7% | 6.3% | 6.2% | 8.1% | 3.7% | 7.8% | 3.7% |
| January | 4.4% | 2.4% | 5.8% | 5.2% | ||||
| February | 1.6% | 3.6% | 2.8% | 2.7% | ||||
| March | 1.2% | 7.5% | 4.0% | 3.9% | ||||
Source: Ministry of Statistics and Programme Implementation
End
Reported by Shubham Rana
Edited by Akul Nishant Akhoury
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