IIP growth quickens to 26-month high of 7.8% in December 2025
The Hindu
IIP growth reaches 26-month high of 7.8% in December 2025, driven by manufacturing, electricity, and consumer goods sectors.
Growth in industrial activity accelerated to a 26-month high of 7.8% in December 2025, driven by strong performances across sectors including manufacturing, electricity, and the consumer goods sectors, official data released on Wednesday (January 28, 2026) showed.
Data released by the Ministry of Statistics and Programme Implementation on the Index of Industrial Production showed that the index last grew faster than December’s growth rate in October 2023, when it grew 11.9%.
The manufacturing sector grew 8.1% in December 2025, marginally slower than the 25-month high of 8.5% seen in November. This was, however, significantly faster than the 3.7% growth seen in December 2024.
“Industry registered high growth of 7.8% in December aided by revival in manufacturing as well as the advantage of low base effect,” Madan Sabnavis, chief economist at the Bank of Baroda said. “High growth in November and December is reflective of the buoyancy expected post GST rationalisation as well as the investment activity in the country.”
A reflection of this investment activity could be seen in the capital goods sector, which grew at 8.1% in December 2025. This follows a 10-month high growth rate of 10.1% in November. Notably, the growth in capital goods came on a high base of a 10.5% growth rate in December 2024.
“On the investment front, infrastructure and construction goods continued to register healthy growth, supported by sustained capex at both the Central and state government levels,” Rajani Sinha, chief economist at CareEdge Ratings said.
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