India’s industrial sector ended 2025 on a high note, with output rising 7.8% in December, the fastest pace in over two years. The surge highlights a strong revival in factories, power plants, and mines, signaling a resilient industrial momentum as the economy moves into 2026.
Manufacturing, which makes up the largest share of industrial activity, led the charge with 8.1% growth. Electronics, optical products, and motor vehicles recorded notable gains, reflecting healthy domestic demand and a pickup in production after earlier slowdowns.
Mining output climbed 6.8%, while electricity generation rebounded with a 6.3% increase, reversing November’s decline. Analysts note that the combined strength across these key sectors shows that India’s industrial base is broadening and not reliant on one segment alone.
On a use-based level, infrastructure and construction goods were the top performers, supported by growth in consumer durables, capital goods, and intermediate products. This mix points to steady investment activity alongside consumer-driven demand.
Compared to November’s 7.2% growth, December’s numbers reveal a clear acceleration in industrial production, boosting optimism for early 2026. Still, cumulative growth for the April–December period remains slightly lower than the previous year, reflecting uneven activity earlier in 2025.
Economists see December’s strong numbers as a positive indicator for the broader economy. With factories humming, power production rising, and mining activity picking up, India appears poised to maintain its industrial momentum, which could support jobs, investments, and economic growth in the months ahead.
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