New Delhi, Dec 29 Healthy gains in manufacturing and mining suggest that underlying industrial momentum is strengthening in India, potentially supporting broader economic performance in the near to medium term, industry leaders and economists said on Monday.
The Index of Industrial Production (IIP) registered a record high growth of 6.7 per cent (quick estimate) in November, compared to 5 per cent in the same month last year, "driven by notable deceleration in the manufacturing and mining sectors," PHD Chamber of Commerce and Industry (PHDCCI) President Rajeev Juneja said.
The manufacturing sector grew strongly on a year-on-year basis by 8 per cent in November. This acceleration is attributed to the fact that 20 out of 23 industry groups at the "NIC 2-digit-level" have recorded a positive growth in November 2025 over November 2024 in the manufacturing sector.
The top three positive contributors for the month of November 2025 are – ‘Manufacture of basic metals’ (10.2 per cent), ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ (10.5 per cent) and ‘Manufacture of motor vehicles, trailers and semi-trailers’ (11.9 per cent), Juneja said.
The mining sector registered a robust growth rate of 5.4 per cent in November 2025. compared to a 1.9 per cent growth in the corresponding month of the previous year.
According to ICRA Chief Economist Aditi Nayar, the IIP upswing largely reflects the shift in the festive calendar, restocking after the festive season sales, as well as some normalisation in activity across the mining and electricity segments, following the excess unseasonal rains in the previous month.
"We expect the IIP growth to ease to 3.5-5.0 per cent in December 2025, as the base effect normalises and the benefit from restocking wanes," Nayar said.
The sharp rebound in IIP growth reflects a broad-based recovery, led by manufacturing, particularly in basic metals, pharmaceuticals, and automobiles.
"The strength in capital goods and infrastructure-related output points to improving investment activity, while the decline in electricity generation largely reflects post-festive normalisation rather than a slowdown in underlying industrial demand,” MP Financial Advisory Services LLP Founder and Managing Partner, Mahendra Patil, said/
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