India’s industrial sector ended 2025 on a strong note. Industrial production growth surged to a two-year high of 7.8% in December 2025, reflecting broad-based recovery across manufacturing, mining, and electricity. The latest data signals improving demand conditions and renewed momentum in the real economy after months of uneven performance.
What Is the Index of Industrial Production (IIP)?
- The IIP is a key economic indicator that measures short-term changes in the volume of industrial output.
- Compiled and released by the Ministry of Statistics and Programme Implementation, it tracks performance across manufacturing, mining, and electricity sectors.
- Manufacturing carries the highest weight, making its performance crucial for overall IIP growth. Strong IIP numbers often indicate rising demand, improved capacity utilisation, and better employment prospects.
Manufacturing Leads the Industrial Surge
- Manufacturing output grew by a robust 8.1% in December, emerging as the main driver of industrial growth.
- Key industries that showed strong expansion include computer, electronic and optical products, motor vehicles, trailers and semi-trailers, and other transport equipment.
- This growth reflects rising consumer demand, steady exports in select segments, and improved supply-chain conditions.
- Given manufacturing’s dominant share in IIP, its strong performance significantly lifted overall industrial output.
Mining Activity Gains Momentum
- Mining production expanded by 6.8%, indicating increased extraction of minerals and raw materials.
- Strong mining growth supports downstream industries such as steel, cement, and power generation.
- It also reflects stable demand from infrastructure projects and manufacturing units.
- The pick-up in mining activity suggests improved industrial confidence and continuity in large-scale construction and capital expenditure.
Electricity Output Rebounds Sharply
- Electricity generation recorded 6.3% growth in December, rebounding sharply from a 1.5% contraction in November.
- This turnaround signals higher industrial and commercial power demand.
- Rising electricity output often mirrors increased factory activity and improved utilisation of industrial capacity, making it a positive indicator for near-term economic momentum.
Key Summary at a Glance
| Aspect | Details |
| Why in News? | IIP growth hit a two-year high |
| IIP Growth (Dec 2025) | 7.8% |
| Previous Month | 7.2% (revised) |
| Manufacturing Growth | 8.1% |
| Mining Growth | 6.8% |
| Electricity Growth | 6.3% |
Question
Q. India’s Index of Industrial Production (IIP) grew by how much in December 2025?
A. 6.3%
B. 7.2%
C. 7.8%
D. 8.5%
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