Government data revealed that India’s manufacturing inflation stood at 1.82% year-on-year in December 2025. The modest rise reflects stable input costs, resilient demand, and supportive policy measures. Analysts suggest the trend signals a balanced economic environment heading into 2026.
India’s manufacturing sector recorded a year-on-year inflation rate of 1.82% in December 2025, according to official government data released this week. The figure highlights a moderate increase in manufacturing prices, underscoring the country’s ability to maintain stability despite global uncertainties.
Key highlights of the report include:
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Manufacturing inflation at 1.82% Y/Y, reflecting controlled input costs and steady demand.
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Resilient domestic consumption and strong public investment helped balance pressures from global commodity volatility.
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Policy support from the Reserve Bank of India (RBI), which has maintained a growth-supportive stance while keeping inflation in check.
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Sectoral performance: Steel, cement, and consumer goods showed modest price increases, while electronics and textiles remained stable.
Economists note that India’s inflation trajectory remains within a “goldilocks zone”, low enough to support household purchasing power yet steady enough to encourage industrial growth. The data comes alongside broader indicators such as the HSBC Manufacturing PMI, which slipped slightly to 55.0 in December from 56.6 in November, still signaling expansion.
With inflation contained and growth projections strong, India enters 2026 on a balanced economic footing, reinforcing confidence among businesses and policymakers alike.
Sources: Indian Express, LinkedIn Economic Highlights.