Is IIP Growth Indicating a Strengthening Industrial Momentum in India?
Synopsis
The latest IIP growth figures indicate a strong industrial momentum in India, backed by significant gains in manufacturing and mining. This trend is set to bolster the economy in the near term, as experts anticipate continued positive performance across various sectors.
Key Takeaways
IIP growth reached a record high of 6.7% in November 2025.
Manufacturing sector grew by 8% year-on-year.
Top contributors include basic metals , pharmaceuticals , and motor vehicles .
The mining sector showed a significant growth of 5.4% .
Expectations for December 2025 indicate a moderation in growth rates.
New Delhi, Dec 29 (NationPress) Significant improvements in the manufacturing and mining sectors indicate a strengthening of industrial momentum in India, which could bolster the nation's economic performance in the near to medium term, according to industry leaders and economists. The Index of Industrial Production (IIP) has hit a remarkable growth rate of 6.7 percent (quick estimate) in November, an increase from 5 percent in the same month last year. This growth is driven by a marked deceleration in the manufacturing and mining industries, stated PHD Chamber of Commerce and Industry (PHDCCI) President Rajeev Juneja.
The manufacturing sector exhibited robust growth, increasing by 8 percent year-on-year in November. This rise is credited to the fact that 20 out of 23 industry groups at the NIC 2-digit level reported positive growth compared to November 2024.
For November 2025, the leading contributors to this growth were: ‘Manufacture of basic metals’ (10.2 percent), ‘Manufacture of pharmaceuticals, medicinal chemicals and botanical products’ (10.5 percent), and ‘Manufacture of motor vehicles, trailers and semi-trailers’ (11.9 percent), as noted by Juneja.
The mining sector saw a strong growth rate of 5.4 percent in November 2025, compared to just 1.9 percent in the same month the previous year.
ICRA Chief Economist Aditi Nayar pointed out that the increase in IIP can largely be attributed to changes in the festive calendar, restocking after festive season sales, and some normalization in mining and electricity activities after the previous month's excess unseasonal rains.
“We anticipate IIP growth to moderate to between 3.5-5.0 percent in December 2025, as the base effect normalizes and the benefits of restocking diminish,” Nayar commented.
The significant rebound in IIP growth suggests a broad-based recovery, especially in manufacturing, particularly in sectors like basic metals, pharmaceuticals, and automobiles.
“The resilience in capital goods and infrastructure-related output indicates an uptick in investment activity, while the decline in electricity generation primarily reflects post-festive normalization rather than a slowdown in underlying industrial demand,” remarked Mahendra Patil, Founder and Managing Partner of MP Financial Advisory Services LLP.
Point of View
It is critical to highlight the positive trajectory indicated by the recent IIP growth. This suggests a potential economic uplift, a sign that India’s industrial sectors are gaining momentum. We stand by the facts and insights presented by industry leaders and economists, advocating for a balanced view on this development.
NationPress
20 Jun 2026
Frequently Asked Questions
What is the current IIP growth rate?
The current IIP growth rate is recorded at 6.7 percent for November 2025.
Which sectors are contributing most to IIP growth?
The manufacturing sector, particularly basic metals, pharmaceuticals, and motor vehicles, are the top contributors.
What factors are influencing these growth rates?
Factors include changes in the festive calendar, restocking after sales, and normalization in mining and electricity activities.
What is expected for IIP growth in December 2025?
IIP growth is anticipated to moderate to between 3.5-5.0 percent in December 2025.
How does this impact the Indian economy?
This growth signifies a strengthening industrial momentum, likely supporting broader economic performance in the coming months.
