Growth in the Index of Industrial Production surged to a 25-month high of 6.7% in November 2025, driven by a broad-based improvement led by the manufacturing and capital goods sectors, data released by the government on Monday (December 29, 2025) shows.

The data released by the Ministry of Statistics and Programme Implementation showed that the IIP’s growth in November 2025 was last outpaced by the 11.9% seen in October 2023. 

Within the Index, the manufacturing sector too saw November 2025 growth accelerating to a 25-month high of 8%. Notably, this was on a relatively high base of 5% growth in November 2024. It was also significantly faster than the 1.8% growth recorded in October 2025.

The infrastructure and construction sector grew at 12.1% in November 2025, the fastest since October 2023, and also on a strong base of 8% in November last year.

Buoyed by the relatively strong performances of the manufacturing and construction sectors, the capital goods sector saw growth quicken to an 11-month high of 10.4% in November 2025. 

The mining sector saw growth accelerating to a three-month high of 5.4% in November 2025, following two months of contractions. The electricity sector was the only one to record a contraction, of 1.5%, in November 2025, down from a growth of 4.4% in November last year.

Notably, both consumer durables and consumer non-durables sectors witnessed a rebound in growth in November 2025, growing 10.3% and 7.3%, respectively. This was a 12-month and 25-month high for the two sectors, respectively. 

Growth in industrial activity in India slowed to 4% in August 2025 from its 6-month high growth of 4.3% in July. Growth was dragged down by the consumer durables and non-durables sectors, as well as slower growth in manufacturing, capital goods, and infrastructure sectors, government data showed.

On the other hand, mining activity, the primary goods sector, and electricity output saw a positive turnaround.

Data on the Index of Industrial Production (IIP), released by the Ministry of Statistics and Programme Implementation on Monday (September 29, 2025), showed that growth in the index this August was considerably faster than the 0% growth seen in August last year.

“This data should be read with caution as it captures neither the tariff nor GST effect which have been in the news and affected sentiment in business,” Madan Sabnavis, Chief Economist at the Bank of Baroda said. “Tariffs were implemented from Aug 27th while GST benefits kicked in late September,” he added.

The mining and quarrying sector in particular saw a significant turnaround. It grew 6% in August 2025, a 14-month high, snapping a four-month streak of contractions.

The second sector to see a robust turnaround was the primary goods sector, which saw growth coming in at a seven-month high of 5.2%. The electricity sector grew at a five-month high of 4.1% in August 2025.

The manufacturing sector, however, slowed to 3.8% in August 2025, down from 6% in July. This was quicker than the 1.2% growth the sector saw in August last year.

Similarly, growth in the capital goods sector slowed in August 2025 to 4.4% from 6.7% in July 2025. This was, however, quicker than the 0% seen in August last year.

Growth in the infrastructure and construction goods sector remained in double digits, at 10.6%, although this was slower than the growth seen in July 2025 of 13.7%.

Consumer-focused sectors saw growth slowing. The growth in the consumer durables sector slowed to 3.5% in August 2025 from 7.3% in July and 5.4% in August last year. The consumer non-durables sector saw activity contracting 6.3%, the worst performance in eight months.

Industrial growth jumped to a four-month high of 3.5% in July 2025, driven by a broad-based recovery in the manufacturing, electricity, capital, and consumer goods sectors.

However, the Index of Industrial Production for July 2025, released by the Ministry of Statistics and Programme Implementation on Thursday, grew at a slower pace than the 5% growth seen in July last year.

The manufacturing sector grew at a six-month high of 5.4% in July 2025, compared to 4.7% in July 2024. The electricity sector saw growth returning in July 2025 after two months of contraction. It grew 0.6% in July 2025, compared to 7.9% in July last year.

Mining contraction

The mining sector (-7.2%), however, continued to contract in July 2025, its fourth consecutive month of contraction. 

According to Madan Sabnavis, chief economist at the Bank of Baroda, the mining sector’s relatively poor performance can be attributed to the monsoon as well as to subdued demand.

‘Positive sign for investment’

The capital goods sector grew by 5% in July 2025, on top of an already high base of 11.7% in July 2024.

“Overall, the metals and machinery segments have done well, with basic metals, fabricated metals, and electric machinery registering double digit growth,” Mr. Sabnavis noted. “Non-metallic mineral products too registered an impressive growth of 9.5%. This is a positive sign for investment taking place in the economy.”

The consumer durables sector grew at a seven-month high of 7.7% in July 2025, while the consumer non-durables sector grew at an eight-month high of 0.5%.