Workers assemble mobile phones at the Dixon Technologies factory in Noida, India on January 28, 2021.
Bloomberg | Bloomberg | getty images
India’s industrial output grew just 0.4% in October, a 14-month low, indicating a sharp slowdown in the economy.
The index of industrial production (IIP) slowed from September’s 4% growth and less than the 3.1% expected by economists in a Reuters poll.
Domestic consumption across key consumer categories improved after the Goods and Services Tax cut was implemented on September 22.
The Ministry of Statistics and Program Implementation said the slow growth in industrial output could be due to reduced number of working days due to several festivals including Dussehra and Diwali. This is the lowest increase since August 2024.
Manufacturing sector output grew only 1.8% in October against 4.8% in September, while mining activity and electricity generation declined by 1.8% and 6.9%, respectively.
The growth rates for the three sectors, mining, manufacturing and power for October 2025 are -1.8%, 1.8% and -6.9% respectively.
October has been an important month for the economy, as New Delhi cut GST to boost domestic consumption and cushion the blow of 50% US tariffs on Indian goods.
Despite tariffs, Indian economy grew faster than expected in quarter ended September Up from 7.8% in the previous quarter.
IIP data tracks short-term changes in the production of various industrial products. Eight core industries, including steel, cement, power and fertilizer, have 40% weightage of the index.
In September, IIP growth remained steady at 4.0% as businesses built up inventory ahead of the 5-day festival season in October.
