28.01.202610:44:54UTC+00India Industrial Production Rises Most in 2 Years

In December 2025, India's industrial production experienced a significant increase of 7.9% compared to the previous year. This rise surpasses the upwardly revised 7.2% growth seen in November and exceeds market forecasts of a 5.5% increase, marking the most substantial growth rate since October 2023. This robust expansion counters concerns that the US government's aggressive tariff hikes could lead to a prolonged slowdown in the Indian economy, particularly considering the likely rise in fuel costs for goods producers following US tariffs on major Russian oil producers and distributors. Manufacturing output, which accounts for over 77% of total industrial production, remained strong with an 8.1% increase, slightly down from 8.5% in November. Additionally, output expanded in the mining sector, reaching 6.8% from 5.8%, and in electricity generation, which rebounded to 6.3% from a previous decline of -1.5%.