India 's industrial production witnessed a major spike in December 2025, with the Index of Industrial Production (IIP) growing by 7.8% year-on-year. This is the highest growth rate recorded in over two years, according to official data released today. Sector performance Manufacturing sector leads industrial growth in December The manufacturing sector, which has the highest weightage in the index, grew by 8.1% in December. Economic indicators Consumer demand and infrastructure spending boost industrial output The use-based classification data shows widespread improvement across categories. Consumer durables output accelerated to 12.3% from the previous month's 10.3%, while consumer non-durables growth improved to 8.3% from last month's rate of 7%.