• India’s industrial output (IIP) grew 7.8% in December 2025, up from 7.2% in November, marking the highest level in over two years.
• All three major sectors recorded positive growth: Manufacturing: 8.1%, Mining: 6.8%, Electricity: 6.3%
• Manufacturing remained the primary growth driver, with 16 out of 23 industry groups showing positive growth.
• Strong industrial performance helped ease concerns over a slowdown amid global tariff pressures and higher fuel costs.
• Top-performing sectors: Motor vehicles, trailers and semi-trailers: +33.5%; Basic metals: +12.7%; Pharmaceuticals: +10.2%
• Growth in basic metals was driven by higher production of alloy steel flat products, MS slabs, and steel pipes and tubes.
• Automobile sector growth was supported by increased output of axles, auto components, spares, accessories, and commercial vehicles.
• Pharmaceutical growth was led by veterinary vaccines, digestive enzymes, antacids, and vitamin APIs and formulations.
• Use-based sector performance (YoY):
  – Infrastructure & construction goods: 12.1%
  – Consumer durables: 12.3%
  -Capital goods: 8.1%
  – Intermediate goods: 7.5%
  – Consumer non-durables: 8.3%
  – Primary goods: 4.4%
• Infrastructure, primary goods, and intermediate goods emerged as the largest contributors to industrial growth in December 2025.