NEW DELHI: India’s industrial production grew 0.4% year-on-year in October, marking its slowest pace of expansion in 14 months, as manufacturing, mining and electricity output contracted, provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday showed.
October’s industrial output was lower than the 3.7% expansion recorded in the year-ago period. In September, India’s industrial production grew 4% annually, according to MoSPI’s revised estimates for the month (up from 3.2%).
The latest reading reflects a fragile, uneven rebound in industrial activity amid soft domestic demand, global uncertainty, and sector-specific challenges.
Industrial performance has remained volatile this fiscal year, slowing in the first quarter (April-June) before picking up pace from July. India’s core infrastructure sector, which accounts for over two-fifths of industrial output, posted zero growth in October, with production flat year-on-year, provisional commerce ministry data released earlier this month showed.
“The reasoning of less working days and less workers on ground is correct to some extent,” said N.R. Bhanumurty, director at Madras School of Economics, adding that as IIP covers volume of production, a reduced number of working days due to festivals must have led to slower growth.
Manufacturing, which accounts for nearly 78% of the Index of Industrial Production (IIP), grew 1.8% year-on-year in October, up from 5.6% in September and 4.4% (revised) a year earlier, as per the provisional data.
Mining output contracted 1.8% year-on-year in October, compared with a 0.4% contraction in September, and a modest 0.9% rise in October 2024. Electricity generation also contracted 6.9% in October against a 3.1% growth in September and 2% growth in the same month last year.
Across use-based categories, capital goods, intermediate goods, infrastructure/construction goods, and consumer durables posted sequential growth, while primary goods slowed and consumer non-durables contracted/grew during the month.
Capital goods production rose 2.4% in October, compared with a 4.4% growth in the previous month, according to the provisional data.
Intermediate goods output rose 0.9% annually in October, compared to a 6.3% annual growth registered the previous month. Infrastructure/construction goods output rose 7.9% annually in October, compared with a 10.6% growth in September.
Production of consumer durable goods fell 0.5% annually in October compared to a 10% rise in the previous month. Meanwhile, primary goods production reported a 0.6% contraction in October, compared to a 1.3% rise in September.
During October, production of consumer non-durables contracted by 4.4% annually, compared with a 0.3% contraction reported in the previous month.