India's Index of industrial production records growth of 7.8% in December 2025

1. At a Glance

Index of Industrial Production (IIP) is a composite indicator measuring short-term changes in volume of production of industrial products, released monthly by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI) [S1][S2].
December 2025 print of 7.8% is the highest IIP growth in over two years, signalling broad-based industrial momentum across mining, manufacturing and electricity [S1].
Relevance for UPSC: tests Prelims factuals (base year, weights, releasing body) and Mains GS-III on industrial growth, manufacturing competitiveness, PLI/Make-in-India outcomes.

On 28 January 2026, MoSPI released the Quick Estimate of IIP for December 2025, showing 7.8% YoY growth, up from 7.2% (Revised Estimate) in November 2025 [S1].
Driven by an across-the-board surge in Manufacturing (8.1%), Mining (6.8%) and Electricity (6.3%) [S1].

IIP first compiled in India in 1950 by the (then) Office of Economic Adviser; later transferred to CSO (now NSO) [S2].
Base year revisions: 1937 → 1946 → 1951 → 1956 → 1960 → 1970 → 1980-81 → 1993-94 → 2004-05 → current 2011-12=100 [S2].
A proposal to update the base year to 2022-23 is under consideration by MoSPI's working group (ongoing) [S2].

Releasing agency: NSO under MoSPI [S2].
Base year: 2011-12 = 100 [S1].
Frequency: Monthly Quick Estimates, released with ~6-week lag [S2].
Sectoral composition & weights (2011-12 series): Manufacturing 77.63%, Mining 14.37%, Electricity 7.99% [S2].
Use-based classification (6 categories): Primary, Capital, Intermediate, Infrastructure/Construction, Consumer Durables, Consumer Non-Durables [S2].
Item basket: 407 item groups in Manufacturing, 1 in Mining, 1 in Electricity (data from DIPP-tracked corporate sector & line ministries) [S2].
December 2025 IIP value: 170.3 vs 158.0 in December 2024 [S1].

Manufacturing's 8.1% growth indicates capacity utilisation pickup and is the largest contributor given its 77.63% weight [S1][S2].
Use-based indices for December 2025: Primary 164.6, Capital 124.0, Intermediate 182.8, Infrastructure/Construction 219.1 — high infra index signals continued capex push by government [S1].
Capital goods at 124.0 — lowest among use-based — reflects private capex still lagging public investment.

Top manufacturing growth driver: "Computer, Electronic and Optical Products" at 34.9% — reflects traction from PLI for Electronics/Semiconductors and India Semiconductor Mission [S1].
"Motor Vehicles, Trailers and Semi-Trailers" at 33.5% and "Other Transport Equipment" at 25.1% suggest strong auto-sector and EV-linked output [S1].

Data sourced from 14 source agencies across Ministries (e.g., DPIIT, Ministry of Mines, CEA) — coordination challenge [S2].
IIP is a lead indicator used by RBI's Monetary Policy Committee, Finance Ministry and the NSC for GDP estimation [S2].

December 2025 print is the highest in 2+ years, surpassing pandemic-era base effects [S1].

Nov 2025: IIP grew 7.2% (RE) — strong festive/post-monsoon rebound [S1].
Dec 2025: Released 28 Jan 2026; growth of 7.8% [S1].
MoSPI working group reviewing base-year revision to 2022-23, with revised item basket and updated weights [S2].

IIP base year: 2011-12 = 100 [S1].
Releasing agency: NSO, MoSPI (not RBI, not NITI Aayog) [S2].
Manufacturing weight in IIP: 77.63% [S2].
Mining weight: 14.37%; Electricity weight: 7.99% [S2].
Number of use-based categories: six (Primary, Capital, Intermediate, Infra/Construction, Consumer Durables, Consumer Non-Durables) [S2].
IIP December 2025 growth: 7.8% [S1].
Manufacturing growth in Dec 2025: 8.1%; Mining: 6.8%; Electricity: 6.3% [S1].
Top growth industry in Dec 2025 manufacturing: Computer, Electronic and Optical Products (34.9%) [S1].
IIP index value Dec 2025: 170.3 vs 158.0 (Dec 2024) [S1].
IIP Nov 2025 (RE): 7.2% [S1].
Frequency of release: monthly, with ~6-week lag [S2].
IIP is a lead indicator of industrial sector performance, used in GDP advance estimates [S2].

GS-III: Indian Economy — Growth and Development; Industrial Policy; Government Budgeting; PLI/Make-in-India outcomes.
Syllabus heading: "Effects of liberalisation on the economy; Changes in industrial policy and their effects on industrial growth."
Plausible question stems: 1. "Recent IIP prints show manufacturing-led recovery. Examine the role of Production Linked Incentive (PLI) schemes in driving India's manufacturing growth." 2. "Discuss the limitations of the Index of Industrial Production as a measure of industrial performance in India and suggest reforms." 3. "Capital goods continue to lag overall industrial growth. What does this imply for the private investment cycle in India?"

National Statistical Office (NSO) & MoSPI — institutional architecture of Indian statistics.
Eight Core Industries Index — overlaps with IIP, ~40.27% weight; different base year (2011-12).
PMI (Manufacturing & Services) — private survey-based industrial indicator; complements IIP.
Production Linked Incentive (PLI) Schemes — drivers behind electronics/auto growth.
GDP Advance Estimates (NSO) — IIP feeds into GVA estimates.
Index of Eight Core Industries (ICI) — released by Office of Economic Adviser, DPIIT.
Consumer Price Index (CPI) & WPI — sister MoSPI indices.
Make in India / Semiconductor Mission — context for top-growing sectors.

IIP is released by MoSPI/NSO, NOT by RBI or NITI Aayog.
Base year of IIP is 2011-12, same as Core Industries Index but different from CPI (2012=100) and WPI (2011-12) — easy mix-up.
The Eight Core Industries Index is separate from IIP, though its movements feed in (40.27% weight in IIP manufacturing).
"Manufacturing" weight is ~77.6%, not two-thirds — aspirants often misquote.
Use-based classification has six categories, not five; Infrastructure/Construction Goods was added in the 2011-12 series (it was not a separate category earlier).

[S1] India's Index of industrial production records growth of 7.8% in December 2025 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219602 — (tier: 1)
[S2] Index of Industrial Production (IIP) — MoSPI — https://www.mospi.gov.in/iip — (tier: 1)