India's Industrial Surge: November IIP Expected to Rebound

Union Bank of India's report anticipates a robust 4.0% recovery in India's industrial production index for November 2025, rebounding from October's post-festival slump. Key growth drivers include manufacturing, consumption recovery, and improved goods movement, despite mixed trends in GST and electricity demand.

India's industrial sector is on a path to recovery, with the Index of Industrial Production (IIP) anticipated to surge by 4.0% year-on-year in November 2025, according to a report by Union Bank of India.

This rebound follows a dip to 0.4% in the previous month, attributed to holiday disruptions from key festivals, including Diwali. November's figures are expected to reflect a resurgence in manufacturing activity and consumer demand.

The report highlights that manufacturing, bolstered by festive purchases and GST rate cuts, will drive this growth. Upcoming developments, such as the progress on the India-US trade deal, could further support the industrial sector, particularly export-related industries.

High-frequency indicators present a robust economic picture for November, with e-way bill generation up 27.6% and petroleum consumption accelerating by 3.0%. Despite a slower growth in GST revenues due to rate adjustments, other indicators suggest healthy economic activity.

The report underscores a significant rise in digital transactions and highlights automobile production as a key growth driver, boasting a remarkable 22.3% increase in November, after October's slump affected by major festivals.

(With inputs from agencies.)