India’s factories are firing on all cylinders. Industrial production surged to a two-year peak of 7.8 percent in December, driven by a robust manufacturing sector that outpaced recent months.
The Ministry of Statistics and Programme Implementation released data showing the Index of Industrial Production (IIP) jumped from November’s 6.7 percent. This marks the strongest growth in over 24 months, signaling renewed vigor across factories, mines, and power plants.
Manufacturing led the charge with an 8.1 percent rise, while mining climbed 6.8 percent and electricity generation grew 6.3 percent. Key performers included computer and electronics products, up 34.9 percent, motor vehicles at 33.5 percent, and basic metals surging 12.7 percent.
Pharmaceuticals also shone, with 10.2 percent growth fueled by demand for vaccines, digestive aids, and vitamins. On the use-based front, infrastructure goods rose 12.1 percent, consumer durables hit 12.3 percent, capital goods 8.1 percent, and intermediate goods 7.5 percent.
This momentum underscores steady investment and consumer spending. April-December FY26 saw overall IIP growth at 3.9 percent, with recent revisions confirming the upward trajectory.
Experts like CareEdge Rating’s Rajni Sinha highlight government capital expenditure as a backbone for infrastructure demand. Coupled with GST improvements, tax relief, RBI rate cuts, and easing inflation, consumption remains resilient.
Looking ahead, the upcoming Union Budget will be pivotal. Policies on capex and private investment, amid global risks like US tariffs, will shape industrial fortunes. For now, December’s data paints a promising picture of economic resilience.
