Healthy growth in manufacturing and mining sectors is boosting India’s industrial momentum, potentially enhancing overall economic performance in the short to medium term, as per industry experts and economists. The Index of Industrial Production (IIP) surged by 6.7% in November, a significant increase from the 5% recorded in the same period last year, primarily fueled by a notable expansion in manufacturing and mining activities, stated PHD Chamber of Commerce and Industry President Rajeev Juneja.
In November, the manufacturing sector exhibited a robust 8% year-on-year growth, with 20 out of 23 industry groups at the “NIC 2-digit-level” showing positive growth compared to the previous year. Key contributors to this growth include ‘Manufacture of basic metals’ (10.2%), ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ (10.5%), and ‘Manufacture of motor vehicles, trailers and semi-trailers’ (11.9%), highlighted Juneja.
The mining sector also saw a substantial growth rate of 5.4% in November 2025, a notable increase from the 1.9% growth reported in the same month of the previous year. ICRA Chief Economist Aditi Nayar attributed the upswing in IIP to factors such as festive calendar shifts, restocking post-festive season sales, and normalization in mining and electricity activities following unseasonal rains in the prior month.
Expectations are for the IIP growth to moderate to 3.5-5.0% in December 2025, as the base effect stabilizes and the impact of restocking diminishes, according to Nayar. The significant rebound in IIP growth signifies a widespread recovery, particularly driven by manufacturing sectors like basic metals, pharmaceuticals, and automobiles. Capital goods and infrastructure-related output strength indicates an improvement in investment activity, while the decline in electricity generation is seen as a post-festive normalization rather than a sign of industrial demand slowdown, noted Mahendra Patil, Founder and Managing Partner of MP Financial Advisory Services LLP.
