Index of Industrial Production Grows At 6.7% In November

New Delhi: With the strong performances in key sectors, India’s industrial production grew at a two-year high of 6.7 per cent in November this year. The sharp acceleration was led by the expansion not only in the manufacturing and mining sector, but also supported by higher output in basic metals, pharmaceuticals and motor vehicles, according to official data released on Monday.

The factory output, measured in terms of the index of industrial production (IIP), had expanded by 5 per cent in November 2024. The previous high was recorded at 11.9 per cent in November 2023. However, the government data showed that the growth of a two-year high of 6.7 per cent in November was led by the manufacturing sector and mining sector, which posted a growth of 8.0 per cent and 5.4 per cent respectively year-on-year.

Ahead of the festivals, the goods and services tax (GST) rates were cut on a host of consumer items, effective from September 22, 2025, to boost demand and consumption in the country. This led to piling of manufacturing orders to get benefit of GST rate reduction.

“The impact of the US tariffs and penalties is likely to reflect across some of the manufacturing segments, partly offsetting the positive impact of the GST rate rejig. However, the electricity demand expanded in December 2025 after a gap of two months, which should boost power generation in the month, auguring well for IIP growth in the month,” said Aditi Nayar, chief economist, head-research & outreach of ICRA.

The National Statistics Office (NSO) revised the industrial production growth to 0.5 per cent for October 2025 from the provisional estimate of 0.4 per cent released last month. “We expect the IIP growth to ease to 3.5-5.0 per cent in December 2025, as the base effect normalises and the benefit from restocking wanes,” Nayar added.

During the April-November period of FY26, the country's industrial production growth decelerated by 3.3 per cent compared to 4.1 per cent in the same period a year ago. “Driven by 8 per cent growth in the manufacturing sector, IIP recorded a 6.7 per cent year-on-year growth in November 2025. The growth is led by Manufacture of basic metals and fabricated metal products, pharmaceuticals and motor vehicles,” the data showed.

It also explained that the growth in the mining sector at 5.4 per cent has also rebounded due to closure of monsoon season and strong growth in metallic minerals such as Iron ore. “Within the manufacturing sector, 20 out of 23 industry groups have recorded positive year-on-year growth in November 2025. As per the use-based classification, the capital goods segment grew 10.4 per cent in November 2025, up from 8.9 per cent in the year-ago period,” it said.