The Index of Industrial Production (IIP) growth rate for October 2025 eased sharply to 14-month low of 0.4%, compared to 4.0% in September 2025, thus marking a slower growth primarily due to fewer working days in the month on account of festivals including Dussehra, Diwali and Chhath, the latest data shared by Ministry of Statistics & Programme Implementation (MoSPI) stated.

De-growth for key sectors like mining and eletricity stood at -1.8%, and -6.9%, respectively, while manufacturing recorded 1.8% growth. Lower demand and reduced electricity generation were driven by extended rainfall and comfortable temperatures across several states/UTs.

Here are the key highlights:

1) The Quick Estimate of IIP stands at 150.9, compared to 150.3 in October 2024. The IIP for mining stands at 126.2, manufacturing at 151.1, and electricity at 193.4.

2) Within manufacturing, 9 of 23 industry groups recorded positive growth in October 2025 over October 2024. The top contributors are: manufacture of basic metals (6.6%), manufacture of coke and refined petroleum products (6.2%), and manufacture of motor vehicles, trailers and semi-trailers (5.8%).

3) In basic metals, major contributors are HR coils and sheets of mild steel, flat products of alloy steel, and MS slabs. In coke and refined petroleum products, major contributors are diesel, petrol/motor spirit, and hard coke. In motor vehicles, major contributors are auto components/spares and accessories, passenger cars, and commercial vehicles.

4) As per use-based classification, indices for October 2025 stand at: Primary goods (148.9), capital goods (111.8), intermediate goods (166.5), Infrastructure/Construction Goods (197.2), Consumer Durables (129.2) and Consumer Non-durables (139.9).

5) Corresponding growth rates over October 2024 are: Primary goods (-0.6%), Capital goods (2.4%), Intermediate goods (0.9%), Infrastructure/Construction goods (7.1%), Consumer durables (-0.5%), and Consumer non-durables (-4.4%). Top contributors based on use-based classification are Infrastructure/Construction goods, Intermediate goods, and Capital goods.

6) Along with the Quick Estimate for October 2025, indices for September 2025 have undergone final revision based on updated data from source agencies.

7) The Quick Estimates for October 2025 and the final revision for September 2025 are compiled at weighted response rates of 87.99% and 92.81%.

Commenting on the IIP numbers, Madan Sabnavis, chief economist, BoB, said consumption levels were high as revealed by the GST collections which touched Rs 1.96 lakh crore in October. Yet this did not get reflected in the production numbers. "Q3 will be a critical period for industry as the full impact of GST as well as lower tax rates on income announced in Feb should ideally boost spending."

Rajeev Juneja, president, PHD Chamber of Commerce and Industry (PHDCCI), said the manufacturing sector maintained positive growth, expanding by 1.8% in October 2025, though this was slower than the 4.4% growth recorded in October 2024. "This moderation is attributed to the fact that only 9 out of 23 industry groups within the manufacturing sector at the NIC-2 digit level reported positive growth in October 2025 over the same month last year. The top three positive contributors for the month of October 2025 are – manufacture of basic metals (6.6%), manufacture of coke and refined petroleum products (6.2%) and manufacture of motor vehicles, trailers and semi-trailers (5.8%)."

Ratings agency Crisil, in a note, said manufacturing growth slowed considerably (1.8% from 5.6%) in October, while mining (-1.8% vs -0.4%) and electricity (-6.9% vs 3.1%) recorded negative growth. "For the entire third quarter, however, we expect sturdy consumption demand to somewhat offset the negative impact of weaker export demand and benefit the manufacturing sector," it added.