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Economy January 28, 2026

India's December industrial production jumps 7.8% year-on-year, led by manufacturing and mining

Government figures show broad-based gains across manufacturing, electricity and consumer durables; April-December growth remains modest

By Sofia Navarro
India's December industrial production jumps 7.8% year-on-year, led by manufacturing and mining

India's industrial production expanded 7.8% year-on-year in December, driven by gains in manufacturing, mining and electricity generation, according to government data released on Wednesday. The print outpaced economists' forecasts of a 5.5% rise and followed a revised 7.2% increase in November. While December showed broad-based strength, output for the April-December period rose 3.9% year-on-year, lower than the revised 4.1% a year earlier.

Key Points

  • December industrial output rose 7.8% year-on-year, led by manufacturing and mining.
  • Electricity generation reversed from a 1.5% decline in November to a 6.3% increase in December; consumer durables showed a strong 12.3% gain.
  • April-December industrial output increased 3.9% year-on-year, slightly below the revised 4.1% a year earlier; sectors impacted include manufacturing, mining, electricity, consumer durables and capital goods.

Government data released on Wednesday showed India's industrial output grew 7.8% year-on-year in December, with notable contributions from the manufacturing and mining sectors. Economists had expected a 5.5% increase; November's figure was revised to a 7.2% gain.

Detailed sector performance

  • Manufacturing: Output in the manufacturing sector rose 8.1% year-on-year in December, compared with a revised 8.5% increase in November.
  • Electricity generation: Electricity production climbed 6.3% year-on-year in December, reversing a 1.5% decline recorded a month earlier.
  • Mining: Mining activity increased 6.8% year-on-year in December, up from a revised 5.8% rise in November.
  • Consumer durables: Output of consumer durables, a category that includes items such as cars and phones, grew 12.3% year-on-year in December versus a revised 11.2% growth in November.
  • Consumer non-durables: Production of consumer non-durables, including food items and toiletries, rose 8.3% year-on-year in December compared with a revised 8.0% increase in November.
  • Capital goods: Capital goods output registered an 8.1% year-on-year rise in December, against a revised 10.1% growth in November.

Period-to-date growth

On a cumulative basis, industrial output for the April-December period grew 3.9% year-on-year, marginally lower than the revised 4.1% increase recorded in the same period a year earlier.

Context and implications

December's figures show a broad-based improvement across several major categories of industrial activity, with manufacturing and consumer durables among the strongest contributors. Electricity generation's turnaround from a contraction in November to a positive print in December is a notable development for sectors dependent on power supply. The capital goods sector continued to expand year-on-year, though at a slower pace than the prior month's revised reading.

While the single-month performance in December outpaced expectations, the April-December aggregate points to more moderate growth over the longer period covered by the data.

Risks

  • Revisions to prior-month data - November's numbers were revised, indicating volatility in short-term readings which may affect near-term assessment of momentum (impacts manufacturing and capital goods analysis).
  • Despite strong December growth, the April-December cumulative rise of 3.9% suggests more moderate underlying growth over the period, which could temper expectations for sustained expansion across industrial sectors.
  • Slower month-on-month gains in capital goods compared with the revised November figure (8.1% versus a revised 10.1%) raise uncertainty about the pace of investment-related activity.

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