Growth in India’s industrial production rose to a 26-month high of 7.8% YoY in Dec-25 from 7.2% in Nov-25
Download ReportQuantEco Research | Dec-25 IIP - Strong momentum continues
Growth in India’s industrial production rose to a 26-month high of 7.8% YoY in Dec-25 from 7.2% in Nov-25. The improvement appears broad-based, led by the Manufacturing on the sectoral side, and investment, as well as consumption-oriented goods on the use-based side. While investment-oriented industrial activity has underpinned the headline IIP growth in the post-COVID phase amidst a strong disbursal pipeline of public capex, the incremental acceleration in Q3 FY26 stemmed from consumption-oriented industrial activity. This manifests the outcome of several salubrious factors like low inflation/interest rates, festive season following a surplus monsoon outturn, and most importantly, the GST rate reduction that boosted purchasing power. The internal drivers are likely to remain supportive in the coming quarters. This would help to mitigate the risks from an adverse global environment. Meanwhile, the announcement of the India-US trade deal in the near term would be a positive development.