India’s industrial production slowed sharply in October 2025, rising just 0.4% compared with 4.6% in September. This marks the weakest growth in 14 months, according to official Index of Industrial Production (IIP) data.
The decline mirrors the performance of the country’s eight core industries, which together form 40% of the IIP. Core sector growth fell to 0%, pulled down by energy-heavy sectors like electricity and refinery products.
Why Industrial Growth Slowed in October 2025
Government data attributes the slowdown primarily to the lesser number of working days due to major festivals including Dussehra, Diwali, and Chhath. Many industries operated at reduced capacity during the festive weeks.
Sector-Wise Performance: Mining, Manufacturing, and Electricity
- Mining: -1.8%
- Manufacturing: +1.8%
- Electricity: -6.9%
Electricity output saw the steepest decline due to an extended rainy season and cooler-than-normal temperatures across many states, which reduced power demand.
IIP Levels Compared to Last Year
The IIP Quick Estimate for October 2025 stands at 150.9, slightly higher than 150.3 recorded in October 2024.
Sectoral index values for October 2025:
- Mining: 126.2
- Manufacturing: 151.1
- Electricity: 193.4
Manufacturing Sector: Top Performing Industries
Out of 23 manufacturing industry groups, 9 posted positive growth. The best-performing segments were:
- Basic Metals: +6.6%
Key drivers: HR coils, alloy steel flat products, MS slabs
- Coke and Refined Petroleum Products: +6.2%
Key drivers: Diesel, petrol/motor spirit, hard coke
- Motor Vehicles, Trailers & Semi-Trailers: +5.8%
Key drivers: Auto components, passenger cars, commercial vehicles
Use-Based Classification: What Drove and Dragged IIP
The October 2025 indices stand at:
- Primary Goods: 148.9
- Capital Goods: 111.8
- Intermediate Goods: 166.5
- Infrastructure/Construction Goods: 197.2
- Consumer Durables: 129.2
- Consumer Non-Durables: 139.9
Corresponding YoY growth rates:
- Primary Goods: -0.6%
- Capital Goods: +2.4%
- Intermediate Goods: +0.9%
- Infrastructure/Construction: +7.1%
- Consumer Durables: -0.5%
- Consumer Non-Durables: -4.4%
Top Contributors to IIP Growth in October 2025
The strongest positive contributions came from:
- Infrastructure/Construction Goods
- Intermediate Goods
- Capital Goods
Conclusion
India’s industrial production in October 2025 reflects a temporary slowdown driven by seasonal factors and weak energy output. However, strength in key manufacturing sectors like basic metals, refined petroleum products, and automobiles indicates underlying resilience. Going forward, recovery in electricity demand and normalization of working days may help improve industrial output.
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