Industrial growth slows to 0.4 per cent in festive October

by IANS |

New Delhi, Dec 1 (IANS) 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.