India’s industrial growth slowed sharply in October, with the Index of Industrial Production (IIP) rising just 0.4%, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The steep moderation has been attributed largely to fewer working days during the month, as major festivals including Dussehra, Diwali and Chhath curtailed production schedules across industries.
The October figure marks a dramatic fall from the 4% expansion recorded in September 2025 and the 3.5% growth posted in October 2024, signalling a loss of momentum in industrial activity.
Mixed demand pattern across use-based sectors
Use-based classification revealed contrasting performance across segments: Category Growth in October Infrastructure & Construction Goods +7.1% Capital Goods +2.4% Intermediate Goods +0.9% Primary Goods –0.6% Consumer Durables –0.5% Consumer Non-Durables –4.4%
The consumer non-durables category recorded the steepest contraction, reflecting muted demand for everyday household goods.
Sector-wise performance
During October:
- Manufacturing grew 1.8%, supported by strong output in key industries.
- Basic metals surged 6.6%, driven by higher production of hot-rolled coils, mild steel sheets and alloy-steel products.
- Coke and refined petroleum products expanded 6.2% on the back of increased diesel, petrol and hard coke production.
- Motor vehicles, trailers and semi-trailers rose 5.8%, aided by strong demand for auto parts, passenger vehicles and commercial transport.
- Electricity generation remained largely flat.
- Mining activity contracted 1.9%, highlighting continuing challenges in resource extraction and energy-linked industries.
April–October IIP trend
Between April and October 2025–26, overall industrial output grew 2.7%, supported primarily by a 3.9% rise in manufacturing. However, weak performance in mining and subdued electricity generation weighed on the overall industrial outlook.
Outlook
Economists say the sharp slowdown in October underscores both production disruptions caused by festival holidays and uneven demand conditions across industrial segments. Analysts will be monitoring the upcoming months to determine whether the slowdown is temporary or indicative of deeper structural softness.
A clearer picture is expected to emerge as manufacturing activity stabilises and infrastructure spending gathers pace in the remainder of the fiscal year.