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India's Industrial Growth Slows to 0.4% Amid Festive Season and Monsoon Impact

India's industrial growth hit a significant slowdown in October 2025. The Index of Industrial Production grew by just 0.4%, a sharp drop from the previous month. This was largely due to fewer working days during major festivals and a sharp contraction in electricity output. However, experts remain optimistic that government initiatives will help boost output in the coming months.

Key Points: India's IIP Growth Slows to 0.4% in October 2025

  • Industrial growth slowed sharply from 4.0% in September to just 0.4% in October 2025
  • Electricity output plunged 6.9% due to extended monsoon and lower demand
  • Manufacturing grew 1.8%, but only 9 of 23 industry groups showed expansion
  • Infrastructure and construction goods were the strongest category, growing by 7.1%
2 min read

India's industrial output slows to 0.4% in October 2025

India's industrial output growth slowed sharply to 0.4% in Oct 2025, with electricity and mining sectors contracting. Manufacturing showed modest growth.

"The slower growth of 0.4 per cent in October 2025... was driven by the decline in mining and electricity. - Rajeev Juneja, PHDCCI President"

New Delhi, December 1

India's Index of Industrial Production (IIP) slumped to 0.4 per cent in October 2025, marking a slowdown from 4.0 per cent in September, according to data released by the Ministry of Statistics and Programme Implementation. The moderation in output was largely due to fewer working days during the month, as several major festivals such as Dussehra, Diwali, and Chhath fell in October.

The Quick Estimate of IIP stood at 150.9 in October 2025, compared to 150.3 in the same month last year. The three key sectors, Mining, Manufacturing, and Electricity, showed mixed trends. Mining recorded a dip of 1.8 per cent, while Manufacturing expanded by 1.8 per cent, and Electricity output dropped sharply by 6.9 per cent. The ministry noted that the fall in electricity generation was due to an extended monsoon season and cooler temperatures, which reduced demand across several states and union territories.

Within the manufacturing sector, only 9 out of 23 industry groups reported growth compared to the previous year. The top-performing segments were basic metals (6.6 per cent), coke and refined petroleum products (6.2 per cent), and motor vehicles, trailers, and semi-trailers (5.8 per cent). Growth in these categories was supported by strong production of items such as HR coils and sheets of mild steel, petrol and diesel, and auto components.

Based on use, the indices stood at 148.9 for Primary Goods, 111.8 for Capital Goods, 166.5 for Intermediate Goods, and 197.2 for Infrastructure/Construction Goods. Consumer durables and non-durables were at 129.2 and 139.9, respectively. The corresponding growth rates showed slumps in primary goods of 0.6 per cent and consumer non-durables of 4.4 per cent, while infrastructure/construction goods grew by 7.1 per cent, emerging as the strongest category.

Commenting on the data, Rajeev Juneja, President of the PHD Chamber of Commerce and Industry (PHDCCI), said that the slower growth of 0.4 per cent in October 2025 compared to 3.7 per cent a year earlier was driven by the decline in mining and electricity. He added that while manufacturing remained positive, growth had softened as fewer industry groups reported expansion.

Ranjeet Mehta, Secretary General and CEO of PHDCCI, expressed optimism about the future. He said that ongoing government initiatives, such as the Production Linked Incentive (PLI) Scheme for White Goods, the Export Promotion Mission, and bilateral cooperation with countries including the UAE, Canada, Israel, and New Zealand, would help boost industrial output in the coming months. These measures, he said, could strengthen manufacturing, enhance investment, and improve export competitiveness.

Index for November 2025 will be released on December 29.

- ANI

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Reader Comments

S
Sarah B
Working in the renewable sector, the 6.9% drop in electricity output is concerning but the reason (extended monsoon) makes sense. We need more grid-level storage solutions to manage these seasonal demand fluctuations better.
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Priyanka N
Infrastructure goods growing at 7.1% is the silver lining! Shows that government spending on roads, railways, and housing is still strong. That's what will drive long-term growth, not just festival-season consumer spending. 👍
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Aman W
Only 9 out of 23 manufacturing groups growing? That's the real story. The growth is too narrow. We need broader-based recovery, especially in MSMEs. The PLI is good for large industries, but what about the small guys?
K
Karthik V
Auto components and basic metals doing well is positive for 'Make in India'. But the sharp fall in consumer non-durables (4.4%) is worrying. Are people cutting back on daily essentials? Hope it's just a seasonal blip.
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Michael C
Respectfully, while festivals are a factor, we can't keep using them as the only explanation for slowdowns every year. There might be deeper structural issues in mining and power sectors that need addressing. The data should prompt a review.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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