NEW DELHI: India’s industrial output reached a two-year high as it grew by 6.7% in November primarily driven by the growth in manufacture of basic metals, fabricated metal products, pharmaceuticals and motor vehicles. Thus, industrial activity witnessed a sharp rebound in this month after touching the yearly lowest in October, when the industrial production growth declined to a fourteen-month low to 0.4%.
The Index of Industrial Production (IIP) for sectors like mining and manufacturing for the month of November 2025 stood at 5.4% and 8.0% respectively, revealed the latest data compiled by the government. Growth in the mining sector also rebounded as it grew by 5.4% due to closure of monsoon season and strong growth in metallic minerals, which was previously at 1.8% in October.
“Despite the demand boost spurred by GST rationalisation, IIP growth averaged at 3.6% during October-November FY2026, lower than the 4.3% expansion seen in Q2 FY2026, led by a weaker performance of the electricity sector,” stated ICRA.
Due to the festive season in October, there was slow down in the industrial activity. Electricity output also recovered slightly, with the decline narrowing to 1.5% from 6.9% a month earlier. For the tariff hit sectors like apparels, textiles leathers, there has been some slow down in production. For the period of April to November in this year, the production declined by 0.6%, 2.3% and 4.3% for textiles, apparels and leather respectively as compared to the period in the previous year.
According to ICRA 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.
There has been a growth of 10.3% in consumer durables and 7.3% in consumer non-durables. Infrastructure and construction goods, intermediate goods, and consumer non-durables emerged as the top three drivers of the Index of Industrial Production (IIP) growth in November 2025, underscoring steady demand across core, manufacturing-linked and consumption-oriented segments of the economy.