Source CNBC
India’s industrial activity registered a sharper-than-expected slowdown in October, with the Index of Industrial Production (IIP) growing just 0.4%, according to data released on Monday. The figure is significantly below market estimates, which had projected a growth of around 2–3%, and marks one of the weakest monthly performances in recent quarters.
Economists attribute the muted expansion to softer manufacturing activity, weak consumer demand in key sectors, and the lingering impact of supply-side disruptions. Manufacturing — which accounts for more than three-fourths of the IIP — saw minimal growth, while mining and electricity output also remained subdued.
High-frequency indicators suggest that several industries experienced slower momentum due to elevated input costs and cautious consumer spending ahead of the festive season. Production of capital goods and consumer durables, both indicators of long-term investment and household demand respectively, recorded declines.
Despite the disappointing October numbers, analysts expect industrial activity to gradually pick up in the coming months as supply conditions normalize and festive season demand fully reflects in subsequent data releases. However, they caution that global uncertainties, inflationary pressures, and fluctuating commodity prices remain key risks.
The government, meanwhile, has expressed confidence that targeted policy support and ongoing infrastructure investments will help revive momentum in the industrial sector.
With the latest print, India’s industrial growth continues to display uneven recovery patterns, highlighting the need for sustained policy focus to strengthen domestic demand and boost manufacturing competitiveness.
