India Industrial Production Growth Slows Sharply

The industrial production in India rose by 7.9% from the previous year in December of 2025, picking up from the upwardly revised 7.2% advance in the earlier month and above market expectations of a 5.5% rise to mark the sharpest pace of growth since October of 2023. The robust growth pace pushed back against concerns that aggressive tariff hikes by the US government would drive a sustained slowdown in the Indian economy, especially as goods producers are likely paying for more expensive fuel after the US tariffed major Russian oil producers and distributors. Output remained high for manufacturing (8.1% vs 8.5% in November), which is responsible for over 77% of total industrial production. Output also expanded for mining (6.8% vs 5.8%) and electricity generation (6.3% vs -1.5%).

The industrial production in India grew 6.7% from the previous year in November of 2025, accelerating from the upwardly revised 0.5% increase in the previous month, to mark the sharpest pace of expansion since October of 2023. The robust growth pace pushed back against concerns that aggressive tariff hikes by the US government would drive a sustained slowdown in the Indian economy, especially as goods producers are likely paying for more expensive fuel after the US tariffed major Russian oil producers and distributors. Growth was noted in manufacturing (8% vs 2% in October) on higher output of basic and fabricated metal products, pharmaceuticals, and motor vehicles. Growth was also sharp for mining (5.4% vs -1.8%) as the closure of the monsoon season supported operations. On the other hand, electricity output fell for a second month (-1.5% vs -6.9%).

Industrial production in India increased 0.4% year-on-year in October 2025, following an upwardly revised 4.6% gain in September and well below market expectations of 3.6%. It marks the smallest annual growth rate since August 2024 when industrial output stalled. Electricity production slumped 6.9% due to extended rainfall and mild temperatures across several states. Also, mining decreased 1.8% while manufacturing output went up 1.8%. The Ministry of Statistics & Programme Implementation said the slow industrial production growth could be due to fewer number of working days because of a number of festivals including including Dussehra, Diwali, and Chhath. Considering the April to October period, industrial production rose 2.7%.