November industrial growth surges to 6.7%, highest in 25 months

Mining output, which rebounded in November, had contracted on a year-on-year basis in six of the previous seven months as rainfall restricted activity.

India’s industrial output rose 6.7 per cent year-on-year in November, posting the highest rate of growth in 25 months aided by a favourable base effect, which also helped propel manufacturing production by 8 per cent – also the most in 25 months. Restocking after heavy festive sales also contributed to higher manufacturing production, while output of the other two sectors – mining and electricity – improved compared to October as rains eased.

According to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, the Index of Industrial Production (IIP) increased sharply in the penultimate month of 2025 on the back of rapid rise in manufacture of basic metals and fabricated metal products, pharmaceuticals, and motor vehicles. “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,” MoSPI said in a statement.

Industrial growth as per the IIP stood at a 14-month low of 0.5 per cent in October. Mining output, which rebounded in November, had contracted on a year-on-year basis in six of the previous seven months as rainfall restricted activity. The lower temperatures due to the good rains have also impacted electricity generation, which was down 1.5 per cent in November compared to the same month last year after shrinking by 6.9 per cent year-on-year in October.

On the whole, industrial production was up 3.3 per cent in April-November as against a rise of 4.1 per cent in the first eight months of 2024-25, led by a 4.4 per cent rise in manufacturing output. In April-November 2024, output of the manufacturing sector – which makes up more than three-fourth of the IIP – was up 4.1 per cent on a year-on-year basis.

Mining output was 0.9 per cent lower in the first eight months of the current fiscal, while electricity generation was down 0.2 per cent.

The pick-up in industrial growth in November will be welcomed by policymakers, with high-frequency data post the July-September quarter having hinted at a marked slowdown. Production of India’s eight core industries – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity – had shrunk 0.1 per cent in October before posting an increase of 1.8 per cent in November.

Core sector performance is seen as a lead indicator of industrial growth as it makes up around 40 per cent of the IIP. Economists have widely predicted a slowdown in the second half of 2025-26 after India’s GDP grew by a faster-than-anticipated 8 per cent in the first six months, forcing across-the-board upgrades to growth forecasts. For instance, the Reserve Bank of India (RBI) earlier this month raised its projection for 2025-26 to 7.3 per cent from 6.8 per cent. The Indian central bank sees growth cooling to 7 per cent in October-December and 6.5 per cent in January-March 2026 from 8.2 per cent in July-September.

In terms of goods, the November IIP data showed that much of the impetus last month came from consumer non-durables, whose production swung from a year-on-year fall of 5.2 per cent in October to a 7.3 per cent rise despite an unfavourable base effect.

The other five categories of goods – primary, capital, intermediate, infrastructure, and consumer durables – also saw higher production in November compared to last year, although they benefitted from a favourable base. Output of capital goods (10.4 per cent), infrastructure goods (12.1 per cent), and consumer durables (10.3 per cent) rose by double digits, while intermediate goods saw an increase of 7.3 per cent. Primary goods’ output was up 2 per cent.

This is only the second time in 2025 that all six goods categories have seen higher production compared to the same month last year.