Industrial Production Growth Slows to 0.4%, Infrastructure Sustains Cumulative Fiscal Growth
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure
Institutions: Ministry of Statistics & Programme Implementation (MoSPI) | Ministry of Finance
The Index of Industrial Production (IIP) recorded a muted year-on-year growth rate of 0.4% in October 2025, a sharp decline from the 4.0% growth seen in September. The Ministry of Statistics & Programme Implementation attributed this slowdown primarily to the fewer working days resulting from major festivals, including Dussehra and Dipawali. The cumulative IIP growth for the current fiscal year (April–October 2025) stands at 2.7%, down from 4.0% in the corresponding period last year.
The modest headline growth masked wide variations in sectoral performance. Manufacturing showed positive growth at 1.8%, led by the Manufacture of basic metals (6.6%), coke and refined petroleum products (6.2%), and motor vehicles, trailers and semi-trailers (5.8%). However, this was significantly dragged down by contractions in key sectors: Electricity fell by 6.9% (to an index of 193.4), attributed to lower demand due to an extended rainfall season, and Mining declined by 1.8% (to an index of 126.2).
Analysis by use-based classification confirms the continued reliance on investment: Infrastructure/Construction Goods registered the strongest growth at 7.1% (contributing to an 8.5% cumulative growth for the half-year). Capital Goods also recorded a positive 2.4% growth. Conversely, consumption remains weak: Consumer Durables saw a decline of 0.5%, and Consumer Non-durables suffered a substantial contraction of 4.4%, signaling lagging private demand despite fiscal spending momentum.
Significant numbers at a glance (October 2025 Growth):
Sectoral Growth:
Manufacturing: 1.8%.
Mining: (-) 1.8% (negative growth).
Electricity: (-) 6.9% (strong negative growth, due to lower demand from extended rainfall).
Top Manufacturing Contributors (2-digit level):
Manufacture of basic metals: 6.6%.
Manufacture of coke and refined petroleum products: 6.2%.
Manufacture of motor vehicles, trailers and semi-trailers: 5.8%.
Use-Based Classification Growth (Year-on-Year):
Infrastructure/Construction Goods: 7.1% (Top positive contributor).
Capital Goods: 2.4%.
Intermediate Goods: 0.9%.
Consumer Durables: (-) 0.7% (negative growth).
Consumer Non-durables: (-) 4.4% (strong negative growth).
Cumulative Fiscal Year Growth (Apr-Oct 2025):
General IIP: 2.7% (down from 4.0% in the previous year).
Policy Relevance: The disparity—where investment-led segments show resilience while consumption-based industries contract sharply—validates the need for targeted policy action. The data underscores the sustained effectiveness of public infrastructure spending but highlights the ongoing imperative to mitigate volatility and introduce decisive measures to stimulate private consumption and balance the sources of industrial growth.
What is the Index of Industrial Production (IIP)?→ The IIP is a composite economic indicator that measures the short-term volume changes in the production of a basket of industrial products in India, taking 2011-12 as the base year. It is compiled by the Ministry of Statistics & Programme Implementation (MoSPI) and is a crucial metric for evaluating the growth and health of the industrial economy, covering the Mining, Manufacturing, and Electricity sectors.
Follow the full news here: Quick Estimate of Index of Industrial Production and Use-Based Index for the Month of October 2025