New Delhi: India’s industrial engine roared to its strongest pace in over two years this December, providing a robust signal of economic resilience as the new year begins. Official data released on Wednesday showed the Index of Industrial Production (IIP) surged by 7.8% year-on-year, accelerating from a revised 7.2% growth in November 2025.
This impressive performance was driven by broad-based growth across the board. The crucial manufacturing sector, which has a dominant 77.6% weight in the index, expanded by 8.1%. It was complemented by a 6.8% growth in mining and a 6.3% increase in electricity generation, painting a picture of synchronized recovery in core infrastructure and production.
Electronics and Auto Sectors Lead the Charge
A deep dive into the manufacturing data reveals standout performers that fueled the expansion. The "Computer, Electronic & Optical Products" category witnessed a stellar 34.9% jump, underscoring India's growing prowess in electronics manufacturing, likely driven by mobile phone and component production linked to the Production-Linked Incentive (PLI) scheme.
Close on its heels was the "Motor Vehicles, Trailers & Semi-Trailers" segment, which grew by a robust 33.5%. This points to sustained, high demand in the automobile sector, encompassing passenger vehicles, commercial vehicles, and auto components. The "Other Transport Equipment" category, which includes sectors like railways and defense, also posted a strong 25.1% growth.
Investment and Consumer Demand Remain Strong
The use-based classification of the data offered further encouraging signs. Capital Goods production, a key indicator of investment activity in the economy, grew by 8.1%. Simultaneously, Consumer Durables output rose by 12.3%, suggesting that household spending on big-ticket items like appliances and vehicles remains healthy. The Infrastructure/Construction Goods segment also saw a double-digit expansion of 12.1%, aligning with the government's continued focus on infrastructure development.
"Today's IIP numbers are exceptionally positive," said Dr. Anjali Mehta, Chief Economist at a leading financial advisory. "The across-the-board growth, especially the stellar performance in electronics and autos, indicates that policy support, improved supply chains, and festive demand are converging to create a powerful industrial rebound. This sets a optimistic tone for GDP growth in the last quarter of the fiscal year."
The cumulative growth for the first nine months of the fiscal year (April-December 2025) stands at a healthy 3.9%, with the manufacturing sector growing at 4.8% during this period. The data reinforces the view that the Indian economy is on a stable growth trajectory, with industrial activity acting as a key pillar.