A manufacturing powerhouse awakens. India’s Index of Industrial Production (IIP) rocketed 7.8 percent in December, the highest in over two years, as per official figures released Wednesday.
Outpacing November’s revised 7.2 percent, this surge reflects broad-based strength. Manufacturing spearheaded with 8.1 percent growth across 16 of 23 industry groups. Standouts: electronics and optics at 34.9 percent, automobiles at 33.5 percent, and transport equipment up 25.1 percent.
Mining and electricity weren’t far behind at 6.8 percent and 6.3 percent respectively. Basic metals jumped 12.7 percent, thanks to alloy steel and pipes, while pharma grew 10.2 percent on vaccine and vitamin demand.
Use-based categories tell a story of balanced expansion: infrastructure/construction goods up 12.1 percent, consumer durables 12.3 percent, capital goods 8.1 percent, intermediates 7.5 percent, and primary goods 4.4 percent.
Cumulative April-December growth stands at 3.9 percent for FY26, building on early-year fluctuations. Consumer non-durables rose to 8.3 percent, signaling robust household demand.
CareEdge’s Chief Economist Rajni Sinha notes this as the fastest pace in 24+ months, crediting sustained capex and supportive policies like RBI cuts and tax sops. The budget looms large, with global headwinds like tariffs in focus.
India’s industrial engine is revving up, poised for sustained acceleration if momentum holds.