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High-frequency indicators of industrial activity remained strong in December, says RBI
(21-Jan-2026, 18:12 Hours IST)  
Reserve Bank of India (RBI) has stated in its monthly update today that in November, growth in industrial activity, as measured by the year-on-year (y-o-y) change in the Index of Industrial Production (IIP), jumped to a 25-month high, primarily driven by a robust manufacturing growth. Mining sector also rebounded after two consecutive months of contraction. The index of eight core industries posted a four-month high growth in December, led by strong growth in steel and cement and turnaround in electricity generation. High-frequency indicators of industrial activity remained strong in December. Automobile production experienced accelerated growth across segments in December, underpinned by a healthy booking pipeline driven by policy support, including income tax relief, GST rationalisation, and easier financing conditions. Tractor production also surged in view of buoyant sales propelled by improved cash flows from strong kharif output. Electricity generation, which had contracted for two consecutive months, recovered in December. The manufacturing PMI remained in expansion despite some deceleration due to slower expansion in new orders and output.

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