The sharp rise is the biggest in at least five years, and will likely encourage the government to follow the central bank's lead in unwinding hefty stimulus measures that have helped Asia's third-largest economy return to near 8 percent growth.

Analysts surveyed by Thomson Reuters had forecast an annual rise of 12 percent.

Consumer durables production shot up 46 percent in December from a year earlier and manufacturing output grew 18.5 percent, the Ministry of Statistics said.

Poor performance this time last year, when India was struggling with the fallout of the global financial crisis, boosted gains. In December 2008, manufacturing output contracted 0.6 percent, and consumer durables production shrank 4.2 percent.

Still, the data add to evidence of a solidifying recovery.

India's carmakers have been particularly busy. Production of transport equipment led output gains in December, surging 82.2 percent.

While consumer confidence and lending are growing, the auto recovery has also been spurred by a government bus buying program and tax cuts, which some expect will be at least partially rolled back when the new budget comes out later this month.

The Ministry of Statistics also revised November industrial production growth from 11.7 percent to 11.8 percent.