India’s Industrial Growth Slumps to Over One-Year Low in October
India’s industrial output growth plunged to a 13-month low of 0.4% in October 2025, dragged down by sharp contractions in power and mining sectors, according to official data released on Monday. The Index of Industrial Production (IIP) growth decelerated sharply from 3.7% in October 2024, marking the weakest performance since September 2024’s flat growth.
Key Takeaways
- IIP growth hits 0.4% in October 2025, the lowest in over a year.
- Power sector output contracts sharply by 6.9%, mining by 1.8%.
- Manufacturing growth slows to 1.8% from 4.4% a year ago.
- Only 9 out of 23 manufacturing industry groups show positive growth.
Sectoral Performance: A Deep Contraction
The manufacturing sector, which carries the most weight in the IIP, saw its growth decelerate to 1.8% in October 2025 from 4.4% in the same month last year. The mining sector’s output contracted by 1.8%, a reversal from the 0.9% growth recorded a year earlier. The most severe decline was in the power sector, which contracted by 6.9% compared to a 2% expansion in October 2024.
Use-Based Classification Shows Mixed Trends
Analyzing the data by end-use reveals a concerning picture for consumer demand:
- Consumer Durables: Production contracted by 0.5%, a significant drop from the 5.5% growth seen in October 2024.
- Consumer Non-Durables: Output declined sharply by 4.4% against a 2.8% growth a year ago.
- Capital Goods: Growth moderated to 2.4% from 2.9%.
- Infrastructure/Construction Goods: This was a bright spot, expanding by 7.1%, up from 4.7% a year ago.
The output of primary goods declined by 0.6%, and growth in intermediate goods slowed to 0.9% from 4.8%.
Broader Slowdown Evident
The slowdown is not confined to a single month. For the April-October period of the current fiscal year (FY26), industrial production growth decelerated to 2.7%, down from 4% in the same period a year ago. The National Statistics Office (NSO) also revised upwards the IIP growth for September 2025 to 4.6% from the earlier provisional estimate of 4%.
The data underscores a broad-based weakening in industrial activity, with consumer-facing segments showing particular strain, while infrastructure-linked sectors provide some resilience.
