Source The Hindu
NEW DELHI – India’s industrial activity staged a powerful recovery in November 2025, with the Index of Industrial Production (IIP) jumping to a 25-month high of 6.7%. The surge, reported by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, marks a significant rebound from the muted 0.5% growth recorded in October.
The sharp acceleration was primarily driven by a robust recovery in the manufacturing sector, which expanded by 8.0% year-on-year. Analysts attribute this “Goldilocks” momentum to a combination of post-festive restocking, a favorable base effect, and the delayed impact of GST rate rationalizations implemented in September.
Key Drivers of Growth
The manufacturing sector, which accounts for over three-quarters of the IIP, saw 20 out of 23 industry groups post positive growth. The top performers included:
Motor Vehicles & Trailers: 11.9%
Pharmaceuticals: 10.5%
Basic Metals: 10.2%
Mining activity also turned a corner, growing at 5.4% as operations resumed following the retreat of the monsoon. However, electricity generation remained a slight drag on the headline figure, contracting by 1.5%—though this was a marked improvement from the nearly 7% decline seen in the previous month.
Use-Based Classification
The data revealed a broad-based recovery across different categories of goods, signaling both investment and consumption demand:
Category Growth (YoY) Significance
Infrastructure/Construction 12.1% Reflects sustained government capex and housing demand.
Capital Goods 10.4% Indicates a potential pickup in private industrial investment.
Consumer Durables 10.3% Highlights strong demand for white goods and electronics.
Consumer Non-Durables 7.3% Highest in 25 months; suggests rural demand recovery.
Expert Outlook
Economists suggest that while the November numbers are buoyed by “order pile-up” following tax cuts, the underlying trend remains healthy.
“The 7.3% growth in consumer non-durables is particularly encouraging,” noted Devendra Kumar Pant, Chief Economist at India Ratings and Research. “It suggests that inventories have exhausted and manufacturers are bullish on sustained demand.”
Looking ahead, experts caution that while December may see some moderation as the low-base effect wanes, the recent recovery in electricity demand and strong Purchasing Managers’ Index (PMI) readings suggest that India’s industrial engine is entering 2026 on a strong footing.
