India's industrial output for October 2025 grew by a mere 0.4% year-on-year, significantly below the 3.1% growth forecast in the Reuters poll. This slowdown contrasts with stronger performances in previous months and highlights challenges in mining and electricity sectors amid adverse weather conditions.
India's industrial production saw a sharp deceleration in October 2025, with the Index of Industrial Production (IIP) growing by just 0.4% year-on-year compared to the 3.1% expected by economists polled by Reuters. This marked slowdown reflects the impact of heavy rainfall that disrupted mining activities and electricity generation, two critical sectors in the industrial output mix. The manufacturing sector, while still showing some growth, also faced headwinds compared to prior months.
This slowdown in industrial output comes despite a backdrop of overall economic resilience earlier in 2025, with the economy maintaining steady GDP growth and manufacturing expansions in recent months. The mining segment experienced a notable contraction, while electricity generation fell compared to previous periods. On the other hand, certain manufacturing industries like steel, fertilizer, and petroleum refinery products managed to record some positive growth.
Key Highlights:
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October industrial output growth at 0.4% year-over-year, below Reuters' 3.1% forecast
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Mining sector output declined significantly due to adverse weather impacts
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Electricity production also contracted in October, contributing to the slowdown
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Manufacturing sector growth slowed but some sub-sectors like steel and fertilizer posted gains
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Overall industrial productivity affected by weather-induced disruptions in October
Source: Ministry of Statistics & Programme Implementation (MoSPI) and Reuters Poll data.