India’s Industrial Growth Hits Three-Month Low of 4% as Mining and Manufacturing Slip
India's Index of Industrial Production (IIP) growth slowed to a three-month low of 4% in September 2025. This deceleration was primarily driven by a contraction in the mining sector and a significant slowdown in consumer non-durables and primary goods. Data from the Ministry of Statistics and Programme Implementation (MoSPI) indicates that the first half of the current financial year saw the slowest industrial activity in five years. While the manufacturing sector showed some resilience with 4.8% growth, economists suggest that delayed GST rate cuts might have impacted consumer demand and dealer inventory during the month.
Key Points
- The mining sector contracted by 0.45% in September 2025, a sharp decline from the 6.6% growth recorded in August.
- Consumer non-durables contracted for the second consecutive month by 2.9%, reflecting weak rural and urban demand.
- The overall IIP growth for the April-September period of 2025-26 stood at 3%, the lowest in at least five years.
- Manufacturing growth accelerated slightly to 4.8% in September 2025 from 3.8% in the previous month.
Exam Facts
- IIP is released by the Ministry of Statistics and Programme Implementation (MoSPI).
- September 2025 IIP growth stood at 4%.
- Mining sector growth contracted by 0.45% in September 2025.
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