Daily RC and Vocabulary 31st December

India’s relatively strong industrial performance in November 2025, especially driven by the manufacturing sector as it was, was more likely a flash in the pan than the start of a consistent trend. The Index of Industrial Production (IIP) grew 6.7% in November, the fastest growth rate in 25 months. Within this, the manufacturing sector grew 8%, which also was the fastest in 25 months. On the face of it, this would look remarkable and heartening, especially since October 2025 had seen growth slow to a 14-month low. However, this surge in growth was more likely due to seasonal and one-off factors. According to economists, the strongest push for growth came from sellers re-stocking their supplies following the festive season. The second factor is that the government timed the Goods and Services Tax (GST) rate reductions to coincide with the festive season. This temporary bump in demand would have further eroded stock levels, which then need to be replenished. In fact, the consumer durables and non-durables sectors saw growth in November rebounding to 10.3% and 7.3%, a 12-month and 25-month high, respectively. The third factor that seems to have worked in November is the bounce back of the mining sector following two months of contractions due to an unseasonably long monsoon. The mining sector saw growth come in at a reasonably strong 5.4% in November 2025. All of these are legitimate reasons for growth to pick up, but are not sustainable ones. The electricity and mining sectors will be bound by the vagaries of the weather. Overall consumer demand has been sluggish and industry players are talking of the GST-related boost already ebbing. And the festive season will not come back around until October-November 2026.

In fact, the IIP grew just 3.3% in the longer April-November period, the lowest for these eight months in any of the post-COVID-19 pandemic years. The consumer non-durables sector contracted 1% during this period, showing that the boost in November is not indicative. That the strong growth in November is more an anomaly than a sign of things to come should not come as a surprise. The Reserve Bank of India, earlier this month, predicted that growth in Q3 would slow to 7% from an average of 8% in the first two quarters. The fourth quarter is predicted to slow even further, to 6.5%. All of the previous headwinds still exist. The 50% tariffs by the U.S. are still in place, private investment remains sluggish, foreign capital is pulling out of the country, the weakening rupee is making imports more expensive for an import-dependent economy, real wages are not growing fast enough, and consumer demand remains tepid. Ironically, November’s positive industrial data bring into focus the headwinds the economy is really facing.

📚 Top 10 Difficult Vocabulary from the Editorial

1. Headwinds (Noun)
Meaning: Persistent adverse factors that slow progress or growth.
Example: High inflation and weak global demand continue to act as headwinds for India’s economic recovery.

2. Flash in the pan (Idiom / Noun Phrase)
Meaning: A sudden success or improvement that is short-lived.
Example: The November surge in industrial output may turn out to be a flash in the pan.

3. Restocking (Noun / Gerund)
Meaning: The act of replenishing inventories after depletion.
Example: Post-festive restocking boosted manufacturing output temporarily.

4. One-off (Adjective)
Meaning: Happening only once; not recurring.
Example: The growth spike was driven by one-off policy and seasonal factors.

5. Eroded (Verb – past participle)
Meaning: Gradually reduced or weakened.
Example: Festive demand eroded stock levels, forcing producers to ramp up output.

6. Rebound (Noun / Verb)
Meaning: A recovery after a decline.
Example: The mining sector saw a rebound after disruptions caused by the extended monsoon.

7. Vagaries (Noun – plural)
Meaning: Unpredictable and erratic changes.
Example: Power generation remains vulnerable to the vagaries of the weather.

8. Sluggish (Adjective)
Meaning: Slow-moving; lacking momentum.
Example: Private investment continues to remain sluggish despite policy support.

9. Tepid (Adjective)
Meaning: Weak; showing little enthusiasm or strength.
Example: Consumer demand has remained tepid, limiting sustained industrial growth.

10. Anomaly (Noun)
Meaning: Something that deviates from the normal pattern.
Example: November’s strong IIP data appears to be an anomaly, not a trend.

📘 High-Level RC MCQs (UPSC / CAT / IPMAT Standard)

MCQs

Q1. The author’s primary contention regarding the November 2025 IIP growth is that it:
(a) Reflects a broad-based revival across all sectors of the economy
(b) Indicates the success of recent structural reforms in manufacturing
(c) Is largely the outcome of temporary and seasonal factors
(d) Signals the beginning of a sustained demand-led recovery

Q2. Which of the following best explains why the author considers festive-season restocking insufficient for long-term growth?
(a) Restocking primarily benefits the mining sector rather than manufacturing
(b) It raises inflationary pressures without increasing supply
(c) It is driven by inventory cycles rather than enduring consumer demand
(d) It depends entirely on government subsidies and fiscal expansion

Q3. The reference to the mining sector’s rebound after the monsoon is intended to highlight:
(a) The resilience of extractive industries despite climatic uncertainties
(b) The structural transformation of the mining sector
(c) The role of public sector investment in reviving output
(d) The temporary correction following weather-induced disruptions

Q4. Which of the following, if true, would most strongly weaken the author’s argument?
(a) Consumer non-durables show contraction over the April–November period
(b) Private investment remains hesitant despite policy incentives
(c) Manufacturing growth remains above 8% for the next three consecutive quarters
(d) The rupee continues to depreciate against major global currencies

Q5. The author’s tone towards November’s industrial data can best be described as:
(a) Optimistic but cautious
(b) Sceptical and analytical
(c) Neutral and descriptive
(d) Alarmist and pessimistic

✅ Answers & Explanations

Q1. Answer: (c)

Explanation:
The editorial repeatedly characterises the November growth as a “flash in the pan,” attributing it to restocking, festive demand, GST timing, and weather correction—clearly pointing to temporary factors, not a sustained revival.

Q2. Answer: (c)

Explanation:
The author contrasts inventory-led growth with demand-led growth. Restocking replenishes depleted stocks but does not reflect underlying consumer purchasing power, making it unsustainable.

Q3. Answer: (d)

Explanation:
The rebound is explained as a base effect correction after monsoon-related contraction, not as evidence of long-term strength or resilience of the mining sector.

Q4. Answer: (c)

Explanation:
Sustained manufacturing growth over multiple quarters would contradict the claim that November was merely an anomaly. The other options actually support the author’s pessimism.

Q5. Answer: (b)

Explanation:
The author does not dismiss the data outright but critically evaluates it, acknowledging growth while questioning its durability—reflecting a sceptical and analytical tone.