Industrial Production Growth Slumps to 14-Month Low of 0.4% in October

India’s industrial output growth decelerated sharply to 0.4% in October 2025, marking its weakest pace in 14 months. The slowdown was driven by contractions in electricity and consumer non-durables sectors, coupled with sluggish manufacturing growth.

Key Takeaways

• IIP growth fell to 0.4% in October 2025, the lowest since August 2024.
• Electricity sector output shrank by 6.9%, a sharp reversal from 2% growth a year ago.
• Consumer non-durables contracted 4.4%, while manufacturing grew at a near two-year low of 1.8%.
• Infrastructure and construction goods grew 7.1%, but below previous quarter’s double-digit pace.

Sectoral Performance: A Mixed Picture

The Ministry of Statistics and Programme Implementation data reveals a concerning trend across key sectors. The electricity sector witnessed a severe contraction of 6.9% in October, compared to a 2% growth in the same month last year. Similarly, the consumer non-durables segment declined by 4.4%, a significant drop from the 2.8% growth recorded previously.

“Consumer goods registered negative growth, and the inventory factor would have played out,” Madan Sabnavis, chief economist at the Bank of Baroda said. “It was -0.5% for durables and -4.4% for non-durables. This would need to be monitored for the next two months where traction in a positive direction should be seen.”

Mining and Manufacturing Under Pressure

The mining and quarrying sector continued its weak performance, contracting by 1.8% in October. This marks a contraction in six of the last seven months, indicating persistent challenges. The manufacturing sector, a key driver of industrial activity, grew at a nearly two-year low of 1.8%, a substantial slowdown from the 4.4% growth seen in October 2024.

A Lone Bright Spot

The infrastructure and construction goods sector provided some relief, growing by 7.1% in October, up from 4.7% a year ago. However, this growth was notably lower than the double-digit expansion the sector experienced during the July-September 2025 quarter, suggesting a moderation in pace.

The overall data points to a broad-based slowdown in industrial activity, raising questions about the strength of economic recovery. Economists will be closely watching the next two months of data for signs of a turnaround.