India's Industrial Surge: A November to Remember

India's industrial production hit a two-year peak at 6.7% in November 2025 due to strong mining and manufacturing performance. The growth was spurred by a cut in GST rates, increasing order backlogs. However, power production contracted, and experts forecast IIP growth easing in December.

In a significant boost to the nation's economic indicators, India's industrial production soared to a two-year high of 6.7% in November 2025, driven by robust performances in mining and manufacturing sectors. This surge comes on the heels of tax reforms intended to stimulate consumer spending.

The factory output, as measured by the Index of Industrial Production (IIP), witnessed a considerable increase, attributed largely to the GST rate cuts before the festive season. These adjustments led to an uptick in manufacturing orders, as producers sought to capitalize on the favorable tax environment.

While manufacturing and mining presented strong numbers, the power sector faced a contraction, decreasing by 1.5%. Economic experts, such as Aditi Nayar of ICRA, predict a potential easing of growth in December as the initial benefits of GST reductions diminish and base effects stabilize.