IIP rises to a 26-month high of 7.8%
While construction goods led the increase, it was followed by consumer durables and capital goods even as consumer non-durables recovered significantly
By Samreen Wani
Last Updated: Jan 28, 2026, 16:23 IST1 min
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The Index of Industrial Production (IIP) surged to 7.8 percent in December 2025—the highest in 26 months-- driven by a strong performance in the manufacturing sector. This is the highest growth since October 2023 when the index jumped by 11.9 percent.
The overall index reached 170.3, driven by strong sectoral performances in manufacturing (8.1 percent), mining (6.8 percent), and electricity (6.3 percent).
Within manufacturing, 16 of 23 industry groups posted gains primarily in motor vehicles (33.5 percent), basic metals (12.7 percent), and pharmaceuticals (10.2 percent). Key contributing products included commercial vehicles, steel pipes, and veterinary vaccines.
While construction goods led with a 12.1 percent increase, it was followed by consumer durables (12.3 percent) and capital goods (8.1 percent). Consumer non-durables also recovered significantly, growing at 8.3 percent.
The IIP growth surged to a 25-month high of 6.7 percent in November 2025, a sharp rise from October’s 0.5 percent. However, this spike was primarily driven by festive calendar shifts, post-sale restocking, and a rebound in mining and electricity after unseasonal rains. Despite GST rationalisation, the October-November average of 3.6 percent lagged behind the Q2 FY2026 growth of 4.3 percent, largely due to weakness in the electricity sector.
First Published: Jan 28, 2026, 16:29
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