Industrial growth rises to 6.7% in November, highest in two years, Pg13

Key Highlights:

• India's industrial output increased by 6.7% year-on-year in November 2025, the highest growth rate in 25 months.
• Manufacturing production rose by 8%, also the highest in 25 months, contributing significantly to the overall IIP growth.
• The Ministry of Statistics and Programme Implementation (MoSPI) released the data indicating a sharp rise in the Index of Industrial Production (IIP).
• Key sectors driving growth include basic metals, fabricated metal products, pharmaceuticals, and motor vehicles.
• Overall industrial production grew by 3.3% in April-November 2025 compared to 4.1% in the same period of 2024-25.

Detailed Insights:

• The favorable base effect and restocking after festive sales boosted manufacturing production.
• Mining output rebounded in November after contracting in previous months due to rainfall.
• Electricity generation decreased by 1.5% in November compared to the previous year, impacted by lower temperatures and rainfall.
• The growth in consumer non-durables swung from a 5.2% fall in October to a 7.3% rise in November.
• Core industries output increased by 1.8% in November, after a 0.1% contraction in October, serving as a lead indicator for industrial growth.
• The Reserve Bank of India (RBI) projects India's growth for 2025-26 at 7.3%, revised upwards from 6.8%.
• Output of capital goods, infrastructure goods, and consumer durables rose by double digits, indicating strong economic activity.

Key Concepts Involved:

• Index of Industrial Production (IIP): An index that shows the growth rates of various industry groups in the economy over a specified period.
• Manufacturing Production: The process of using machinery, tools, and labor to transform raw materials into finished goods for sale.
• Core Industries: Eight infrastructure industries that include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity.