India's industrial output surged 7.8% in December 2025, the fastest in over two years, led by manufacturing, mining, and electricity.

Due to improvements in manufacturing, mining, and electricity production, India's industrial output increased 7.8% in December 2025—the fastest rate in more than two years. Electricity production increased 6.3%, mining increased 6.8%, and manufacturing increased 8.1%. The expansion was driven by strong demand for capital goods, infrastructure products, and consumer durables, which was bolstered by recent tax cuts and government spending. Between April and December, industrial production increased by 3.9%, marginally slower than the previous year. Despite strong output, capacity utilization is still at about 75%, which restricts the growth of private investment, and China's global overcapacity may be stifling new capital spending.