India's industrial sector witnessed a significant upswing in December 2025, with output jumping 7.8% year-on-year, marking the fastest pace of growth in over two years. This surge in industrial production, measured by the Index of Industrial Production (IIP), signals a strong finish to the year and points towards a flourishing economic momentum. The official data, released by the Ministry of Statistics and Programme Implementation, indicates a broad-based acceleration across various sectors, exceeding economists' projections of 5.5%.

The robust growth was primarily fueled by the manufacturing sector, which expanded by 8.1%. Mining and electricity generation also contributed significantly, with growth rates of 6.8% and 6.3% respectively. Within the manufacturing sector, the highest growth was recorded in industries such as computer, electronic and optical products (34.9%), motor vehicles, trailers and semi-trailers (33.5%), and other transport equipment (25.1%). The growth in manufacturing, mining, and electricity reflects resilient demand across infrastructure, capital goods, and consumer segments. Specifically, output of consumer durables, including cars and phones, rose 12.3% year-on-year, while output of consumer non-durables, such as food items and toiletries, rose 8.3% year-on-year in December. Capital goods output increased 8.1% year-on-year.

The National Statistics Office (NSO) also revised the industrial production growth for November 2025 upward to 7.2% from the provisional estimate of 6.7% released last month. This further strengthens the positive trend observed in the industrial sector.

However, despite the strong performance in December, the overall industrial production growth during the April-December period of FY26 slowed to 3.9% compared to 4.1% in the same period a year ago.

In summary, India's industrial output experienced a notable resurgence in December 2025, reaching a 26-month high driven by robust manufacturing, mining, and electricity sector performances. This growth reflects strong demand and sets a positive tone for the end of the year, although the cumulative growth for the April-December period indicates a slight moderation compared to the previous year.