Industrial output growth at two-year high of 6.7% in November on robust manufacturing

New Delhi: Industrial output growth rose to an over two-year high of 6.7% in November from a paltry 0.5% recorded in the previous month, led by strong performance of the manufacturing sector, official data showed on Monday.

Manufacturing growth quadrupled to 8% in November from 2% in October. After a gap of nine months, all six used-based sectors posted positive growth. Consumer non-durable sector registered a robust growth of 7.3%, highest in 25 months. Output of consumer durables increased by 10.3% in November, year-on-year.

High consumer non-durable growth post festive season, according to Devendra Kumar Pant, Chief Economist, India Ratings and Research, suggests that the inventories both with wholesaler and manufacturer have exhausted and the demand is likely to continue.

“These numbers have given anecdotal evidence that the GST rationalisation has pushed demand in the economy,” Pant said.

“Factors such as GST rationalization, income tax relief, and easing inflation have boded well for the consumption scenario,” said Rajani Sinha, Chief Economist, CareEdge Ratings.

Average growth in factory output, measured in terms of the Index of Industrial Production (IIP), stood at 3.3% in April-November 2025 as compared with the corresponding period of the last year.

Despite the demand boost spurred by GST rationalisation, IIP growth averaged at 3.6% during October-November 2025, lower than the 4.3% growth registered in July-September period. Average growth in consumer non-durables remained dull at 1.3% in October-November, trailing the 4.3% rise in consumer durables segment.

“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,” said Aditi Nayar, Chief Economist, ICRA.

According to Nayar, the November upswing largely reflects the “shift in the festive calendar, restocking after the festive season sales, as well as some normalisation in activity across the mining and electricity segments following the excess unseasonal rains in the previous month.”

November 2025 IIP growth is the highest since 11.9% expansion recorded in November 2023. In November 2024 the IIP growth stood at 5%.

Mining sector recorded a growth of 5.4% in November against a contraction of 1.8% registered in the previous month. Mining growth has “rebounded due to closure of monsoon season and strong growth in metallic minerals such as Iron ore,” the Ministry of Statistics & Programme Implementation said in a statement.

Electricity production, while still in contraction, showed signs of recovery. The contraction in electricity output narrowed to 1.5% in November from 6.9% in the previous month.

“Electricity demand has expanded in December 2025 after a gap of two months, which should boost power generation in the month, auguring well for IIP growth in the month,” Nayar said.

“We expect the IIP growth to ease to 3.5-5.0% in December 2025, as the base effect normalises and the benefit from restocking wanes,” she added.