India's industrial output growth slowed significantly to 0.4% in October 2025, according to data released by the Ministry of Statistics and Programme Implementation. This marks a sharp decline from the revised 4.6% year-on-year increase recorded in September 2025. The October figure also falls well below economist expectations of 3.1%.

Several factors contributed to this deceleration. Officials have pointed to the fewer number of working days in October due to major festivals such as Dussehra, Diwali, and Chhath. This reduction in working days impacted activity across various sectors of the economy. Additionally, an extended monsoon season and cooler temperatures led to reduced electricity demand, further contributing to the decline.

The Index of Industrial Production (IIP) data reveals a mixed performance across different sectors. Mining and electricity sectors experienced declines, while manufacturing showed positive growth. Specifically, electricity output fell by 6.9%, and mining contracted by 1.8%. Meanwhile, manufacturing growth stood at 1.8%.

In terms of use-based classification, infrastructure and construction goods led with significant expansion, growing by 7.1%. Capital goods followed with a growth of 2.4%, and intermediate goods grew by 0.9%. However, primary goods contracted by 0.6%, consumer durables dipped by 0.5%, and consumer non-durables fell by 4.4% in October.

For the April–October period of 2025-26, industrial output grew by 2.7%, driven by a 3.9% rise in manufacturing. However, electricity output remained flat year-to-date, while mining contracted by 1.9% during the same period.

The slowdown in October's industrial output reflects a temporary deceleration influenced by seasonal and external factors. The next IIP estimate is due in December 2025.