Manufacturing boosts factory output to 6.7%

During the April-Nov period of FY26, the country's industrial production growth decelerated by 3.3% compared to 4.1% in the same period YoY

- PRESS TRUST OF INDIA

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 pileup following a cut in GST rates, according to official data released 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.”