India’s IIP Rises to 7.8% in December, Hits 26-Month High

After a subdued start to the quarter, India’s industrial activity gathered strong momentum in December, with Index of Industrial Production (IIP) growth accelerating to 7.8% from 6.7% in November, marking the fastest pace in 26 months.

On a sectoral basis, manufacturing output—the largest component of the index—expanded 8.1%, marginally higher than 8% in the previous month.

Mining activity also picked up, growing 6.8% compared with 5.4% in November. Electricity generation staged a clear rebound, rising 6.3% after contracting 1.5% a month earlier.

Use-based data showed a broad-based recovery across segments. Growth in primary goods increased to 4.4% from 2%, while capital goods output expanded 8.1%, easing from 10.4% in November. Infrastructure and construction goods continued to show strong momentum, growing 12.1%.

On the consumption front, demand remained resilient. Output of consumer durables accelerated to 12.3% from 10.3%, while consumer non-durables improved to 8.3% from 7.3%, signalling steady consumption demand through the month.

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