India’s industrial activity recorded a sharp acceleration in November 2025 with the Index of Industrial Production (IIP) registering a growth of 6.7%. Which is the highest level seen in the past 25 months. The expansion was led by a broad based recovery in the manufacturing sector, supported by strong performance in capital goods.
Key Growth Highlights
- According to the official data, the 6.7% growth in November 2025 was last surpassed in October 2023 when IIP had expanded by 11.9%.
- The current growth indicates a sustained recovery phase after months of moderate industrial performance.
- Manufacturing emerged as the primary growth driver, benefiting from higher production, improved demand conditions, and increased capacity utilization.
- The capital goods segment also showed strong expansion, pointing to renewed investment activity.
Sector-Wise Performance
- Manufacturing: Recorded robust growth, reflecting improved output across multiple industries.
- Capital Goods: Showed significant expansion, indicating strengthening investment demand and industrial confidence.
- Overall Industry: The growth was broad-based, suggesting that recovery is not limited to a single segment.
Economic Significance
- The strong IIP performance suggests improving economic fundamentals, especially in industrial production and investment-linked sectors.
- Higher capital goods output often signals future growth, as it reflects increased spending on machinery and infrastructure.
- This trend aligns with India’s broader push for industrial expansion, manufacturing-led growth, and infrastructure development.
Background
- The Index of Industrial Production is a key macroeconomic indicator that measures the performance of India’s industrial sectors, including manufacturing, mining, and electricity.
- It provides an early signal of economic momentum and industrial health.
- The latest data was released by the Ministry of Statistics and Programme Implementation and reflects a notable improvement in industrial output compared to previous months.
Key Takeaways
- India’s IIP grew by 6.7% in November 2025, a 25- month high.
- Manufacturing and capital goods were the main growth drivers.
- The last higher IIP growth was recorded in October 2023.
- Strong capital goods output signals rising investment activity.
- The data points to improving industrial and economic momentum
Question
Q. India’s Index of Industrial Production (IIP) recorded a growth of how much in November 2025?
A. 4.2%
B. 5.1%
C. 6.7%
D. 7.9%