India’s industrial production at a 2-year high of 6.7% in Nov

New Delhi: India's industrial production grew at a two-year high of 6.7 per cent in November this year, driven by strong performances in mining and manufacturing, mainly on account of order pile-up following a cut in GST rates, according to official data released on Monday.

The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 5 per cent in November 2024. The previous high was recorded at 11.9 per cent in November 2023.

Ahead of the festivals, the Goods and Services Tax (GST) rates were cut on a host of consumer items, effective from September 22, 2025, to boost demand and consumption in the country.

This led to piling of manufacturing orders to get benefit of GST rate reduction.

Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA, said, "The impact of the US tariffs and penalties is likely to reflect across some of the manufacturing segments, partly offsetting the positive impact of the GST rate rejig."

However, she stated that the electricity demand expanded in December 2025 after a gap of two months, which should boost power generation in the month, auguring well for IIP growth in the month.

"We expect the IIP growth to ease to 3.5-5.0% in December 2025, as the base effect normalises and the benefit from restocking wanes," she added.

The National Statistics Office (NSO) revised the industrial production growth to 0.5 per cent for October 2025 from the provisional estimate of 0.4 per cent released last month.

The NSO data showed that the manufacturing sector's output grew by 8 per cent in November 2025 from 5.5 per cent in the year-ago month. Mining production rose by 5.4 per cent against a growth of 1.9 per cent recorded a year ago. Power production contracted by 1.5 per cent in November 2025, compared to 4.4 per cent expansion in the year-ago period.

During the April-November period of FY26, the country's industrial production growth decelerated by 3.3 per cent compared to 4.1 per cent in the same period a year ago.