India’s eight core industries reported stalled growth in October, marking the weakest performance in 14 months.
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India on Thursday reported stalled growth of its 8 core industries in October. This is the lowest in 14 months.
The growth rate was 3.3 per cent in September. These eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity. These, together, account for 40 per cent of the Index of Industrial Production (IIP).
The latest reading reflects a broad loss of momentum across key industrial categories. According to data released by the government, gains in refinery products, fertilisers, steel and cement were offset by sharp declines in coal, natural gas and electricity generation.
Rainfall impact evident
Commenting on the number, Aditi Nayar, Chief Economist, ICRA, said that excess rainfall impacted mining activity and power demand in October, with coal output and electricity generation contracting by a sharp 8.5 per cent and 7.6 per cent, respectively, in the month. Moreover, steel output growth decelerated sharply to a six-month low of 6.7 per cent from double-digit levels in the previous month, albeit partly due to an adverse base effect from the early onset of the festive season in 2025.
IIP outlook softens
“Given the deterioration in the performance of the mining and electricity segments, ICRA expects the IIP growth to ease somewhat to 2.5-3.5 per cent in October 2025 from 4 per cent in September 2025, even as the growth in manufacturing is likely to remain healthy aided by higher demand during the festive season on account of the GST rate rationalisation and the ensuing restocking,” she said.
Published on November 20, 2025
