Manufacturing output rises 8.1%, led by electronics, automobiles and transport equipment
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The growth rate of factory output based on Index of Industrial Production (IIP) strengthened to 25 month high of 7.8 per cent in December, Statistics Ministry reported on Wednesday.
“Growth in IIP in December 2025, is driven by across-the-board surge in Manufacturing (8.1%), mining (6.8 per cent) and electricity (6.3 per cent),” the Ministry said. Further, in Manufacturing, highest growth recording industries are “computer, electronic and optical products (34.9 per cent)”, “motor vehicles, trailers and semi-trailers (33.5 per cent)” and “other transport equipment (25.1 per cent)”.
Key Highlights:
– The IIP growth rate for the month of December 2025 is 7.8 percent which was 6.7 percent in the month of November 2025.
– The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of December are 6.8 percent, 8.1 percent and 6.3 percent respectively
– Within the manufacturing sector, 16 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in December 2025 over December 2024.
– In the industry group “Manufacture of basic metals”, item groups “Flat products of Alloy Steel”, “MS slabs” and “Pipes and tubes of Steel” have shown significant contribution in growth.
– In the industry group “Manufacture of motor vehicles, trailers and semi-trailers” item groups “Axle”, “Auto components/ spares and accessories” and “Commercial Vehicles” have shown significant contribution in growth.
– In the industry group “Manufacture of pharmaceuticals, medicinal chemical and botanical products”, item groups “Vaccine for veterinary medicine”, “Digestive enzymes and antacids (incl. PPI drugs)”, and “API & formulations of vitamins” have shown significant contribution in growth
– The growth rates of IIP as per Use-based classification in December 2025 over December 2024 are 4.4 percent in Primary goods, 8.1 percent in Capital goods, 7.5 percent in Intermediate goods, 12.1 percent in Infrastructure/ Construction Goods, 12.3 percent in Consumer durables and 8.3 percent in Consumer non-durables
– Based on use-based classification, top three positive contributors to the growth of IIP for the month of December 2025 are Infrastructure/ construction goods, Primary goods and Intermediate goods.
Published on January 28, 2026
