Industrial Growth Slows to 0.4% in Festive October

New Delhi: India’s industrial production growth dropped sharply to 0.4 per cent in October, a slowdown the Ministry of Statistics attributed to fewer working days amid major festivals such as Dussehra, Diwali, and Chhath.

Industrial growth, measured by the Index of Industrial Production (IIP), had shown stronger momentum earlier—expanding 4 per cent in both September and August. This followed a four-month high of 3.5 per cent in July and a modest 1.5 per cent in June.

In October, the manufacturing sector grew by 1.8 per cent year-on-year. Of the 23 manufacturing industry groups, nine recorded positive growth. The top contributors were:

• 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%

Within the basic metals category, items such as HR coils and mild steel sheets, flat alloy steel products, and MS slabs showed significant growth.

However, the mining and electricity sectors saw sharp declines, contracting by 1.8 per cent and 6.9 per cent respectively. The ministry noted that extended rainfall and comfortable temperatures reduced electricity demand and generation across several states and union territories.

On a use-based classification, capital goods production—a key indicator of investment—rose by 2.4 per cent in October compared to last year. Higher production in this segment often signals future job and income growth due to its multiplier effect.

The infrastructure and construction goods sector performed strongly, recording 7.1 per cent growth. This was driven by accelerated government spending on major projects in highways, railways, and ports.

With inputs from IANS