EcoFlash : IIP hits two- year high at 6.7% in November 2025
India’s Industrial Production registered a robust growth of 6.7%YoY in November 2025, a sharp increase from 0.6% in October and the highest level in two years since October 2023. This improvement was primarily driven by the manufacturing sector, with notable contributions from basic metals, pharmaceuticals and motor vehicles. Mining activity also strengthened, although electricity generation recorded a marginal contraction. The sharp rebound follows October’s slowdown, when IIP growth declined to 0.4% due to Diwali-related holidays and temporary factory closures. In comparison, industrial output expanded by 5.0% in November 2024. The November performance reflects normalization of production levels and a recovery in consumption following the festive season.
Key Insights:
* Manufacturing output increased to 8.0% YoY in November, a sharp improvement from 2.0% in September. 20 out of 23 industry groups recorded positive momentum compared to November 2024. The top three contributors were: manufacture of basic metals (+10.2%), driven by MS slabs, HR coils and sheets, and alloy steel products; manufacture of pharmaceuticals and medicinal chemicals (+10.5%), led by digestive enzymes, veterinary vaccines, and anti-psychotic drugs; and manufacture of motor vehicles, trailers, and semi-trailers (+11.9%), supported by auto components, commercial vehicles, and passenger cars. This improvement reflects a combination of factors, including festive season demand, GST rate rationalization, restocking after strong festive sales, and a pickup in exports for select items.
* Mining sector growth rebounded to 5.4% in November, supported by the end of the monsoon season and robust output of metallic minerals, particularly iron ore.
* Excessive rainfall had negatively impacted mining and electricity output in October 2025. However, in November, these sectors witnessed a sharp month-on-month improvement compared to 2024, supported by favorable weather conditions and a higher number of working days due to a shift in the festive calendar.
* Under the use-based classification, the indices for November 2025 stood at 150.7 for Primary Goods, 117.8 for Capital Goods, 170.1 for Intermediate Goods, and 198.7 for Infrastructure/Construction Goods. Additionally, the indices for Consumer Durables and Consumer Non-durables were recorded at 134.0 and 169.7, respectively.
* Consumer Durables recorded a 12-month high in November at 10.3% YoY growth, rebounding from a 1.3% contraction in October 2025. The sharp recovery was driven by GST rate rationalization on electronics and robust performance in the motor vehicles category, which posted an 11.9% increase.
* Consumer Non-Durables achieved a 25-month high in November at 7.5% YoY growth, rebounding from a 5% decline in the previous month. Growth was driven by post-festive restocking as inventories were replenished, alongside a strong 10.5% expansion in the pharmaceutical industry.
* Infrastructure & Construction Goods recorded 12.1% YoY growth, the highest growth among all use-based categories, this segment surged from 7.1% in October. The improvement was fueled by post-monsoon acceleration in construction activity and the government’s Rs.11.2 lakh crore infrastructure spending push under the 2025 Union Budget.
* Capital Goods at a six-month high with 10.3% YoY growth, this category reflects rising private and public investment. Demand was supported by the expansion of manufacturing facilities, successful implementation of PLI (Production-Linked Incentive) schemes, and increased production of specialized machinery and commercial vehicles.
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