India, Dec 02 : Industrial output 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 ministry attributed the subdued performance to fewer working days during major festivals, including Dussehra, Diwali and Chhath, which reduced overall production.
The latest reading marks a steep decline from the 4% growth in September 2025 and 3.5% in October 2024, signalling a broader loss of industrial momentum.
Use-based data showed a mixed performance across categories. Infrastructure and construction goods remained the strongest segment with 7.1% growth, followed by capital goods at 2.4%, and intermediate goods at 0.9%.
In contrast, primary goods shrank 0.6%, consumer durables dipped 0.5%, and consumer non-durables recorded the sharpest fall at 4.4%, underscoring weak demand conditions.
Between April and October 2025–26, industrial output expanded 2.7%, supported mainly by a 3.9% rise in manufacturing. Electricity generation remained flat, while the mining sector contracted 1.9%, reflecting ongoing challenges in extraction and energy-linked industries.
The manufacturing sector posted 1.8% growth in October, driven by select high-performing industries. Basic metals recorded a strong 6.6% rise, supported by increased production of hot-rolled coils, mild steel sheets and flat alloy-steel products. The coke and refined petroleum segment grew 6.2%, led by higher output of diesel, petrol and hard coke. Meanwhile, the motor vehicles category expanded 5.8%, boosted by solid production of auto parts, passenger cars and commercial vehicles.
Overall, the sharp October slowdown highlights the combined effects of festival-related disruptions and uneven demand across industrial categories. Analysts expect the coming months to be crucial in assessing whether manufacturing and infrastructure activity can stabilise and support a broader recovery.