The Index of Industrial Production (IIP) registered a record high growth of 7.8% (Quick Estimate) in December 2025 as compared to 3.7% in December 2024, driven by strong growth in the manufacturing and mining sectors, said Mr. Rajeev Juneja, President, PHD Chamber of Commerce and Industry (PHDCCI).
The manufacturing sector grew robust on a year-on-year basis by 8.1% in December 2025. This acceleration is attributed to the fact that 16 out of 23 industry groups at NIC 2-digit-level have recorded a positive growth in December 2025 over December 2024 in the manufacturing sector, he said.
The top contributors for the month of December 2025 which experienced the double digit growth are – Manufacture of basic metals (12.7%), Manufacture of motor vehicles, trailers and semi-trailers (33.5%), Manufacture of pharmaceuticals, medicinal chemical and botanical products (10.2%), Manufacture of other non-metallic mineral products (12%), Manufacture of computer, electronic and optical products (34.9%) and Manufacture of other transport equipment (25.1%), he said.
The mining sector registered a growth rate of 6.8% in December 2025 compared to a 2.7% growth in the corresponding month of the previous year. The electricity sector witnessed marginal growth from 6.2% growth in December 2024 to 6.3% in December 2025, he added.
Among the use-based categories, five of the six categories registered a higher growth on a year-on-year basis. These include double-digit growth in construction goods (12.1%) and consumer durables (12.3%) in December 2025 as compared to December 2024, he added.
Strong performance across value-added segments such as automobiles, pharmaceuticals, electronics, basic metals and transport equipment reflects enhancing competitiveness and scale in Indian manufacturing. This momentum is expected to translate into higher exports of value-added goods, strengthening India’s integration into global value chains. Thus, a sustained progress in the manufacturing front will reinforce India’s position as a resilient and globally competitive manufacturing hub over the medium term, said Secretary General and CEO, Dr. Ranjeet Mehta.
