Our Bureau
New Delhi
India’s factory output rebounded sharply to a two-year high of 6.7% year-on-year growth in November 2025, recovering from a meager 0.4% in October, official data showed. The Index of Industrial Production (IIP), released by the Ministry of Statistics and Programme Implementation, reflected robust manufacturing activity at 8%, fueled by basic metals, pharmaceuticals, motor vehicles, and fabricated metals. This surge signals renewed economic momentum amid post-festive normalization and strong consumption trends.
Manufacturing led the recovery with an 8% expansion, up from 2% in October, while mining output climbed 5.4% after a 1.8% contraction, driven by post-monsoon gains in iron ore and metallic minerals. Electricity generation dipped 1.5%, contrasting October’s 4.4% rise, due to seasonal winter effects. Use-based data highlighted capital goods jumping 10.4%, infrastructure goods 12.1%, and consumer durables 10.3%, underscoring investment and festive spill over demand.
The October slowdown stemmed from festival disruptions like Diwali, fewer working days, and base effects, with core sectors stagnating. High-frequency indicators now support the upturn: automobile production soared 22.3%, e-way bills rose 27.6%, petroleum use grew 3%, and digital payments expanded. PMI manufacturing eased slightly to 56.6 from 59.2, but services PMI improved to 59.8.
Economists view this as positive for corporate earnings in autos, manufacturing, and consumer sectors, potentially boosting investor confidence. However, challenges persist in electricity and trade-sensitive areas, with future gains tied to deals like India-US pacts.
