Within the manufacturing sector, 20 out of 23 industry groups have recorded positive year-on-year growth in November 2025.
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GANESAN V
With boost in manufacturing and mining sector, factory output measured by Index of Industrial Production (IIP) grew by 6.7 per cent in November as against 0.4 per cent of October, government reported on Monday. The latest reading is highest in 25 months. Experts feel that if this momentum continues for few more months, only recovery can be established.
“Driven by 8 per cent growth in manufacturing sector, IIP recorded a 6.7 per cent year-on-year growth in November. The growth is led by manufacture of basic metals and fabricated metal products, pharmaceuticals and motor vehicles,” a statement by National Statistics Office (NSO) said. Further, it added that 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
Within the manufacturing sector, 20 out of 23 industry groups have recorded positive year-on-year growth in November. As per the use-based classification, the capital goods segment grew 10.4 per cent in November, up from 8.9 per cent in the year-ago period. Consumer durables (or white goods production) grew by 10.3 per cent during the reporting month compared to a 14.1 per cent growth in November 2024.
Infrastructure/construction goods reported a 12.1 per cent expansion in November, up from 8 per cent expansion in the year-ago period.
According to DK Pant, Chief Economist with India Ratings & Research, all six used-based sectors expanded in November after a gap on nine months. More importantly, consumer non-durables sector grew 7.3 per cent, highest in last 25 months. High consumer non-durables growth post festive season suggests that all the inventories both with wholesaler and manufacturer have exhausted.
According to the manufacturer’s assessment, the demand is likely to continue. These numbers have given anecdotal evidence that the GST rationalisation has pushed demand in the economy. This coupled with low inflation would continue to push demand.
However, Pant has a word of caution. “We have to be watchful of 6.7 per cent IIP growth in November and monitor it for couple of quarters to term it as industrial recovery. We have seen in the past after growing in excess of 5 per cent for couple of quarters, the growth fizzles out,” he said while adding that the new IIP with base year of 2022-23 will portray a correct picture of industrial production.
Healthy momentum
Rajni Sinha, Chief Economist with CareEdge, feels factors such as GST rationalisation, income tax relief and easing inflation have boded well for the consumption scenario. On the investment front, there has been sustained healthy momentum in growth of infrastructure/construction goods and capital goods output which logged a growth of 12.1 per cent and 10.4 per cent, respectively.
Encouraging growth in Centre’s capex continues to be a positive. Furthermore, the overall capex outlook remains optimistic as evidenced by the strong order books of the capital goods companies. Going forward, “while domestic conditions show signs of improvement, global headwinds, especially those stemming from the ongoing tariff-related uncertainties, are expected to persist,” she said.
Published on December 29, 2025
