IIP growth slips to 14-month low in October

Growth in industrial activity slowed to a 14-month low of 0.4% in October 2025, pulled down by contractions in the electricity and consumer non-durables sector, as well as relatively slow growth in the manufacturing sector.

Data on the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation showed that growth in the index was last lower than the latest figures in August 2024, when it had come in at 0%.

The electricity sector contracted 6.9% in October 2025, compared with a growth of 2% in October last year. The consumer non-durables sector contracted 4.4% compared with a growth of 2.8% over the same period.

“Consumer goods registered negative growth, and the inventory factor would have played out,” Madan Sabnavis, chief economist at the Bank of Baroda said. “It was -0.5% for durables and -4.4% for non-durables. This would need to be monitored for the next two months where traction in a positive direction should be seen.”

The mining and quarrying sector contracted 1.8% in October 2025, with the sector contracting in six out of the last seven months. The manufacturing sector grew at a nearly two-year low of 1.8%, down from 4.4% in October last year.

The infrastructure and construction goods sector grew by 7.1% in October 2025, up from 4.7% in October last year. However, this was lower than the double-digit growth the sector has been seeing in the July-September 2025 quarter.