Industrial Production Growth Hits 6.7% in November, 2-Year High

India's industrial production growth reached a two-year high of 6.7% in November, driven by strong performances in the mining and manufacturing sectors. This information was released in official data on Monday.

According to data from the National Statistical Office (NSO), the Industrial Production Index (IIP), which measures industrial output, grew by 5% in November 2024. The previous high for industrial production was recorded at 11.9% in November 2023.

Ahead of the festivals, the government reduced the Goods and Services Tax (GST) rates on several consumer goods starting from September 22, 2025, to stimulate demand and consumption. This led to a surge in manufacturing orders as businesses took advantage of the reduced GST rates.

Additionally, the NSO revised the industrial production growth data for October 2025. The IIP growth for October has been revised upward to 0.5% from the previous provisional estimate of 0.4%.

Official data revealed that manufacturing production grew by 8% in November 2025, compared to 5.5% in the same month last year. The mining sector also saw a growth of 5.4% in November, up from 1.9% in November 2024.

However, electricity production showed weaker performance last month. In November, electricity production declined by 1.5%, whereas it had grown by 4.4% during the same period last year.

The improvement in the IIP data for November signals a return to momentum in industrial activities, especially in key sectors like manufacturing and mining.

During April-November in the fiscal year 2025-26, India's industrial production grew at a rate of 3.3%, compared to 4.1% during the same period last year.

Under the manufacturing sector, 20 out of 23 industrial groups reported positive growth on a year-on-year basis in November 2025. ICRA's chief economist Aditi Nayar said, "The impact of US tariffs and fines may be visible in some manufacturing segments, which could dampen the positive impact of GST rate changes." She also noted that electricity demand increased in December 2025, which is expected to boost electricity production and provide a positive outlook for IIP growth. Nayar further added, "We expect the IIP growth for December 2025 to come down to a range of 3.5% to 5.0%, as the comparative base effect will normalize."