India’s industrial output growth slowed in September, missing forecasts as a sharp contraction in mining outweighed gains in manufacturing and electricity generation.
India’s industrial production slowed in September as weaker mining activity offset gains in manufacturing and power generation, according to government figures cited by Business Recorder. Output rose 6.7% from a year earlier, easing from a revised 7.8% increase in August and falling short of the 7.3% rise forecast in a Reuters poll.
The latest figures show that the industrial recovery remained uneven across sectors. Manufacturing increased 7.6% in September, down from a revised 8.6% the previous month, while electricity generation advanced 11.2%, slightly below August’s revised 12.3% pace. Mining was the main drag, with output declining 6.2% after a revised 4.6% fall in August. Related coverage from Business Standard noted that India’s mineral production had still risen 11.5% in September from a year earlier, helped by stronger coal, lignite, manganese ore and limestone output, even as some minerals underperformed.
Demand patterns also appeared mixed further down the industrial chain. Output of consumer durables such as cars and mobile phones increased 6% year on year in September, compared with a revised 10.5% gain in August, while consumer non-durables, including food and toiletries, edged up 1.4% after a revised 1.1% drop the month before. Capital goods production, a useful gauge of investment demand, rose 10.4%, but that was slower than August’s revised 15.9% increase.
For the first half of the fiscal year, industrial output expanded 6.8%, up from 4.4% a year earlier. That suggests India’s industrial sector is still growing at a healthy pace, but with momentum moderating as mining weakness and softer consumer demand weigh on the broader recovery. The picture is consistent with reports from Indian media outlets that September brought a general slowdown in industrial production, even as some core sectors remained comparatively resilient.
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