The manufacturing sector grew 8.1% in December 2025, marginally slower than the 25-month high of 8.5% seen in November. File.
| Photo Credit: Reuters
Growth in industrial activity accelerated to a 26-month high of 7.8% in December 2025, driven by strong performances across sectors including manufacturing, electricity, and the consumer goods sectors, official data released on Wednesday (January 28, 2026) showed.
Data released by the Ministry of Statistics and Programme Implementation on the Index of Industrial Production showed that the index last grew faster than December’s growth rate in October 2023, when it grew 11.9%.
The manufacturing sector grew 8.1% in December 2025, marginally slower than the 25-month high of 8.5% seen in November. This was, however, significantly faster than the 3.7% growth seen in December 2024.
“Industry registered high growth of 7.8% in December aided by revival in manufacturing as well as the advantage of low base effect,” Madan Sabnavis, chief economist at the Bank of Baroda said. “High growth in November and December is reflective of the buoyancy expected post GST rationalisation as well as the investment activity in the country.”
A reflection of this investment activity could be seen in the capital goods sector, which grew at 8.1% in December 2025. This follows a 10-month high growth rate of 10.1% in November. Notably, the growth in capital goods came on a high base of a 10.5% growth rate in December 2024.
“On the investment front, infrastructure and construction goods continued to register healthy growth, supported by sustained capex at both the Central and state government levels,” Rajani Sinha, chief economist at CareEdge Ratings said.
The infrastructure and construction sector grew at 12.1% in December 2025, following a nearly 13% growth rate in November. This sector, too, saw strong growth over a relatively high base of 8.4% in December 2024.
Within the consumer goods sectors, the consumer durables sector saw growth quicken to a 13-month high of 12.3% in December 2025. The consumer non-durables sector saw growth quicken to a 26-month high of 8.3% in December 2025, although this was on a low base as the sector had contracted 7.1% in December 2024.
The electricity sector saw growth quicken to a 17-month high of 6.3% in December 2025.
Published – January 28, 2026 06:10 pm IST
