Index of Industrial Production Nov 2025: Significant Rebound in Manufacturing Growth
SDG 9: Industry, Innovation, and Infrastructure | SDG 8: Decent Work and Economic Growth
Ministry of Statistics & Programme Implementation (MoSPI)
The Quick Estimates for the Index of Industrial Production (IIP) for November 2025 reveal a robust recovery, with the general index recording a 6.7% year-on-year growth. This marks a sharp rebound from the 0.4% growth recorded in October 2025. The overall IIP index stands at 158.0 against 148.1 in November 2024.
Key highlights of the sectoral and use-based performance include:
Manufacturing Resilience: The manufacturing sector led the growth with an 8.0% increase, driven primarily by Basic Metals (10.2%), Pharmaceuticals (10.5%), and Motor Vehicles (11.9%).
Mining Recovery: Mining grew by 5.4%, rebounding significantly as monsoon-related disruptions eased and metallic mineral production, particularly Iron Ore, strengthened.
Electricity Contraction: The electricity sector saw a marginal contraction of (-)1.5% for the month.
Use-Based Strength: Infrastructure and Construction goods recorded the highest growth at 12.1%, followed by Capital Goods (10.4%) and Consumer Durables (10.3%), indicating strong investment and festive demand.
Broad-Based Growth: Within manufacturing, 20 out of 23 industry groups recorded positive growth, with notable contributions from auto components, commercial vehicles, and essential pharmaceutical drugs.
What is the Index of Industrial Production (IIP)? It is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to a chosen base period (currently 2011-12). Compiled monthly by MoSPI, it serves as a critical barometer for the health of Indiaโs industrial sector and is used by policymakers to calibrate monetary and fiscal responses.
What is Capital Expenditure (Capex)? Capital Expenditure, or Capex, refers to the funds used by a company or government to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. In the context of the IIP, strong growth in the Capital Goods and Infrastructure/Construction Goods segments is a direct indicator of increased Capex, signaling long-term investment in productive capacity that drives future industrial output and economic expansion. The current update highlights CapEx impact through double-digit growth in Capital Goods (9.7-10.4%) and Infrastructure/Construction goods (12.1%), signaling government spending effectiveness on projects driving manufacturing (8.0% growth, including Basic Metals +10.2%).
Policy Relevance
The November IIP data signals a return to high-growth momentum, providing a positive outlook for Indiaโs GDP projections in the second half of the fiscal year. The double-digit growth in Capital Goods and Infrastructure Goods is particularly significant as it validates the impact of the governmentโs sustained Capital Expenditure (Capex) push. For policy stakeholders, the resilience in the manufacturing and mining sectors underscores the effectiveness of Supply-Side Reforms and provides a buffer against external global economic headwinds.
Follow the full news here: QUICK ESTIMATE OF INDEX OF INDUSTRIAL PRODUCTION AND USE-BASED INDEX FOR THE MONTH OF NOVEMBER 2025