December IIP Data: Industrial Production Rises 7.8%, Highest In Over Two Years

The Index of Industrial Production grew by 7.8% year-on-year during the month under review, as compared to the revised estimate of 7.2% in November.

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  • India's industrial production rose 7.8% year-on-year in December, highest in over two years
  • Manufacturing sector grew 8.1% in December, slightly lower than November's 8.5% growth
  • Mining output increased 6.8% and electricity production rose 6.3% in December
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India's industrial production rose to its highest level in over two years in December, led by strong manufacturing activity. The Index of Industrial Production (IIP) grew by 7.8% year-on-year during the month under review, as compared to the revised estimate of 7.2% in November, according to the data released by the Ministry of Statistics and Programme Implementation on Wednesday.

The surge in output was driven by the manufacturing sector, which grew at 8.1% compared to 8.5% in the previous month. The highest growth recording industries are computer, electronic and optical products (34.9%), motor vehicles, trailers and semi-trailers (33.5%) and other transport equipment (25.1%).

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Mining output rose by 6.8%, compared to 5.8% in November. Electricity production recorded a positive growth of 6.3% compared to a fall of 1.5%. 

IIP Industry Breakup

  • Primary goods output rose by 4.4% year-on-year in December versus 2.2% in the preceding month.

  • Capital goods grew by 8.1% versus 10.1%.

  • Intermediate goods grew 7.5% versus 7.4%.

  • Infrastructure and construction goods output grew 12.1% versus 13%.

  • Consumer durables rose 12.3% versus 11.2%.

  • Consumer non-durables output rose 8.3% versus 8%.

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