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India's Industrial Growth Slows to 0.4% Amid Festive October

India's industrial growth hit the brakes in October, slowing right down to 0.4%. The government points to all the festival holidays as a key reason for the slowdown. While making things like metals and cars did okay, mining and power generation actually shrank. On a brighter note, spending on big machines and infrastructure projects kept growing strongly.

Key Points: India's Industrial Growth Slows to 0.4 Percent in October

  • Industrial growth slowed sharply from 4% in September to just 0.4% in October 2025
  • The manufacturing sector grew by 1.8%, led by basic metals and vehicle production
  • Mining and electricity sectors contracted by 1.8% and 6.9% respectively
  • Capital goods production rose 2.4%, signaling continued investment in the economy
2 min read

Industrial growth slows to 0.4 per cent in festive October

India's IIP growth slowed sharply to 0.4% in October 2025, with mining and electricity sectors contracting despite growth in manufacturing and capital goods.

"could be attributed to the fewer working days because of a number of festivals in the month - Ministry of Statistics"

New Delhi, Dec 1

The growth rate of India’s industrial production slowed to 0.4 per cent in October this year, which "could be attributed to the fewer working days because of a number of festivals in the month, including Dussehra, Dipawali and Chhath", according to a statement issued by the Ministry of Statistics on Monday.

The country’s industrial growth rate, based on the Index of Industrial Production (IIP), had accelerated to 4 per cent in September and August from a four-month high of 3.5 per cent in July, which, in turn, had surged from 1.5 per cent in June.

The manufacturing sector recorded a positive growth of 1.8 per cent during October compared to the same month of the previous year. Within the manufacturing sector, 9 out of 23 industry groups have recorded positive growth during the month. The top three positive contributors for October are – "Manufacture of basic metals" (6.6 per cent), "Manufacture of coke and refined petroleum products" (6.2 per cent), and "Manufacture of motor vehicles, trailers and semi-trailers" (5.8 per cent).

In the industry group "Manufacture of basic metals", item groups "HR coils and sheets of mild steel", "Flat products of Alloy Steel", and "MS slabs" have shown significant contribution in growth, according to the official figures.

However, the mining and electricity sectors contracted by (-) 1.8 per cent and (-) 6.9 per cent, respectively, during the month. "Lower demand in October 2025 and consequent decline in electricity generation were driven by extended rainfall season and comfortable ambient temperature across multiple States and UTs," the statement said.

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by 2.4 per cent in October over the same month of the previous year. This segment reflects the real investment taking place in the economy, which has a multiplier effect on the creation of jobs and incomes going ahead.

The infrastructure and construction sector clocked a 7.1 per cent growth during the month compared to the same month of the previous year on the back of big-ticket government projects being implemented in the highways, railways, and ports sectors.

- IANS

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Reader Comments

P
Priya S
October is always a slow month for factories with so many holidays. My husband's unit was closed for nearly 10 days for Diwali and Chhath. The real test will be November and December figures. Hoping for a strong rebound! 🪔
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Arjun K
Infrastructure growth at 7.1% is fantastic news! This shows government spending on roads, railways is working. The contraction in electricity is surprising though, even with the rain explanation. Overall, the fundamentals seem okay.
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Sarah B
As someone working in the auto component sector, it's good to see vehicle manufacturing among the top positive contributors. It aligns with the strong festival sales we saw. The concern is the mining sector contraction. That needs attention.
V
Vikram M
Only 9 out of 23 manufacturing groups in positive territory? That's the real story. The growth is too concentrated. What about textiles, electronics, FMCG? We need broad-based growth, not just in metals and vehicles. The policy focus should be there.
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Kavya N
The capital goods number is the most positive takeaway. It means businesses are investing in new machinery, which is a vote of confidence for the future. Let's hope this trend continues beyond the festive season dip.

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