New Delhi: India’s industrial production growth decelerated sharply to a 13-month low of 0.4 percent in October 2025, reflecting weak performance across key sectors such as manufacturing, mining, and power, according to official data released by the National Statistics Office (NSO) on Monday.
The factory output, measured through the Index of Industrial Production (IIP), had recorded a growth of 3.7 percent in October 2024, highlighting a significant slowdown in industrial activity over the past year. The previous low in industrial growth was recorded in September 2024, which saw almost flat growth, signaling early signs of a slowdown in the industrial sector.
Manufacturing Sector Shows Marked Deceleration
The manufacturing sector, which constitutes the largest share of India’s industrial output, showed a noticeable slowdown, with output growth decelerating to 1.8 percent in October 2025, down from 4.4 percent in the corresponding month last year. Analysts attribute this sluggish performance to subdued domestic demand, rising input costs, and logistical constraints affecting production efficiency.
Mining and Power Sectors Contract
The mining sector also witnessed a contraction of 1.8 percent, reversing the growth of 0.9 percent recorded in October 2024. This decline in mining output is linked to lower extraction of coal, metals, and other minerals, which are critical inputs for manufacturing and power generation.
Meanwhile, the power sector faced a steep decline, contracting by 6.9 percent in October 2025, in contrast to a 2 percent growth in the year-ago period. Reduced power generation from thermal plants and variable demand patterns contributed significantly to the fall in overall industrial output.
Revised Figures and FY26 Performance
The NSO also revised September 2025’s industrial production growth upward to 4.6 percent, from the previously estimated 4 percent, indicating a temporary rebound before the sharp slowdown in October.
For the cumulative period from April to October 2025-26, India’s industrial production growth moderated to 2.7 percent, compared with 4 percent during the same period a year ago. This slowdown reflects ongoing challenges in sustaining industrial momentum amid global economic uncertainties and domestic policy adjustments.
Implications for the Economy
The slowdown in industrial production raises concerns about the pace of economic recovery and manufacturing sector growth, particularly as India aims to boost Make in India initiatives and improve employment generation through industrial expansion. Economists note that a contraction in power and mining output can create ripple effects across manufacturing, infrastructure, and allied sectors, potentially affecting overall GDP growth in the coming quarters.
Looking Ahead
Policymakers may need to focus on measures to revive industrial activity, including boosting domestic demand, ensuring steady energy supply, and addressing logistical bottlenecks. With government initiatives like the Production-Linked Incentive (PLI) schemes and infrastructure development projects, analysts are hopeful that industrial growth may regain momentum in the latter half of FY26, provided global and domestic conditions remain stable.
