India’s industrial production grew at a two-year high of 6.7 per cent in November this year, driven by strong performances in the mining and manufacturing sectors, mainly due to an order pile-up following a cut in GST rates. Factory output, measured by the Index of Industrial Production (IIP), had expanded by 5 per cent in November 2024.
Ahead of the festival season, GST rates were reduced on a range of consumer items with effect from September 22, 2025, to boost demand and consumption in the country. This led to a piling up of manufacturing orders as producers sought to benefit from the GST rate reduction.
Data released by the National Statistics Office showed that manufacturing sector output grew by 8 per cent in November 2025, compared with 5.5 per cent in the same month a year earlier. Mining production rose by 5.4 per cent, against a growth of 1.9 per cent recorded a year ago.
According to use-based classification, the capital goods segment registered growth of 10.4 per cent in November 2025, up from 8.9 per cent in the year-ago period.
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