Industrial output growth jumps to 26-month high of 7.8% in December

IIP for December

India’s industrial production rose to a 26-month high of 7.8 percent in December, up from 7.2 percent in November, according to data released by the government on January 28. The sharp pickup was driven by a broad-based acceleration across manufacturing, capital goods and infrastructure-linked segments, signalling resilient momentum at the end of the calendar year.

Manufacturing output—the largest component of the index—expanded 8.1 percent in December, compared with 8.5 percent in November, underscoring steady factory activity despite global uncertainty. Mining output rose 6.8 percent, while electricity generation grew 6.3 percent, pointing to sustained demand from both industry and households.

Capital goods output increased 8.1 percent, reflecting continued strength in investment demand, even as growth moderated slightly from the double-digit pace seen in November. Infrastructure and construction goods remained a key support, rising 12.1 percent, marking another month of robust expansion linked to public capex and project execution.

Consumer demand also showed improvement. Consumer durables output rose 12.3 percent, indicating stronger spending on discretionary items such as appliances and electronics. Consumer non-durables, which had been volatile for much of the year, expanded 8.3 percent, reversing the weakness seen in several earlier months.

Primary goods output grew 4.4 percent, while intermediate goods rose 7.5 percent, suggesting improving traction across the supply chain and reduced bottlenecks in manufacturing processes.