India’s industrial activity saw a sharp rebound in November, with the Index of Industrial Production (IIP) rising to 6.7%, the highest reading in the past
two years, compared with just 0.4% growth in the previous month.
The acceleration was broad-based, led by a strong pickup in manufacturing, which expanded 8% in November, up from 2% in October. Mining output also improved, growing 5.4% compared with a contraction of 1.8% in the previous month.
Electricity output, while still in contraction, showed signs of recovery, with the decline narrowing to 1.5% from 6.9% a month earlier.
Segment-wise data pointed to strengthening investment activity and consumption demand. Capital goods output rose sharply by 10.4% in November, compared with 2.1% in October, indicating sustained momentum in private and public sector capital expenditure.
Infrastructure and construction goods grew 12.1%, up from 7.1% in the previous month.
Consumer demand also showed improvement. Consumer durables output expanded 10.3%, reversing a contraction of 1.3% in October, while consumer non-durables grew 7.3%, compared with a 5.2% decline in the prior month. Primary goods output increased 2%, up from a 0.6% contraction earlier.
The strong November IIP print suggests improving industrial momentum heading into the latter part of the fiscal year, supported by manufacturing strength, infrastructure spending and a recovery in consumption-linked segments.
