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India Factory Output Hits 13-Month Low
1 Dec
Summary
- Industrial production grew by only 0.4% in October, the lowest in 13 months.
- Manufacturing, mining, and power sectors all experienced significant slowdowns.
- Fewer working days due to festivals are cited as a primary reason for the dip.
Factory output in India decelerated significantly in October, with the Index of Industrial Production (IIP) recording a mere 0.4% growth, marking the lowest point in 13 months. This slowdown reflects a broad-based decline across key industrial sectors.
The manufacturing sector's output growth fell to 1.8% from 4.4% in the previous year, while mining production contracted by 1.8%, and power production saw a sharp decline of 6.9%. The Statistics Ministry suggested that the reduced number of working days due to major festivals like Dussehra, Diwali, and Chhath contributed to this deceleration.
Experts note that while infrastructure and capital goods showed resilience, the overall trend warrants attention. Some economists advise waiting for November's data to fully assess the impact, considering factors like GST rate changes and potential global trade influences. The cumulative industrial production growth for April-October FY26 slowed to 2.7%.
