India’s industrial production recorded its fastest growth in over two years, rising 7.8 per cent in December 2025, driven by strong performance in manufacturing, mining and power sectors, according to official data released on Wednesday.

The growth in factory output, measured by the Index of Industrial Production (IIP), marks a sharp acceleration from the 3.7 per cent expansion recorded in December 2024. The National Statistics Office (NSO) said industrial momentum strengthened further in December after a strong performance in November.

The NSO also revised the IIP growth figure for November 2025 upward to 7.2 per cent from the earlier provisional estimate of 6.7 per cent, indicating sustained improvement in industrial activity towards the end of the year.

However, for the April–December period of FY26, overall industrial production growth moderated to 3.9 per cent, slightly lower than the 4.1 per cent growth recorded during the same period of the previous financial year.

Manufacturing output rose by 8.1 per cent in December 2025, compared to 3.7 per cent growth a year ago. High growth was seen in computer, electronic and optical products, motor vehicles and other transport equipment, reflecting strong demand and improved production levels.

Mining output increased by 6.8 per cent during the month, significantly higher than the 2.7 per cent growth recorded in December 2024. Power generation also showed steady expansion, growing by 6.3 per cent against 6.2 per cent in the year-ago period.

Use-based classification data showed robust growth in capital goods, infrastructure and construction goods, and consumer durables, indicating improved investment activity and consumer demand. Within manufacturing, 16 out of 23 industry groups reported positive growth. Key contributors included basic metals, automobiles and pharmaceuticals, supporting the overall rise in industrial output during December.