Factory output growth slows to 6.7 per cent in September
BusinessLine 1 hr ago·28 Oct 2026, 3:00 pm
India's industrial production growth slowed to 6.7 per cent in September, a notable deceleration from the previous month. This dip was largely driven by a sharp 6.2 per cent contraction in mining output, which was hampered by late monsoon rains affecting mineral extraction. However, the broader Index of Industrial Production (IIP) also faced headwinds from base effects and adjustments related to the implementation of GST 2.0.
For investors, this data signals a temporary cooling in manufacturing momentum rather than a structural crisis. The slowdown suggests that while domestic demand remains resilient, supply-side factors like weather and regulatory changes are currently weighing on production. This mixed picture highlights the importance of looking beyond headline numbers to understand the underlying drivers of economic activity.
Moving forward, market participants should monitor the manufacturing PMI and upcoming consumption data to gauge if the slowdown is a short-term blip or the start of a broader trend. Investors will also need to watch how government policy and weather patterns evolve, as these will be key determinants of the industrial sector's recovery trajectory.
Excerpt from BusinessLine
While mining contracted 6.2 per cent due to late monsoon, the broader IIP slowdown is attributed to base effects and GST 2.0 adjustments Factory output growth, based on Index of Industrial Production (IIP) slowed to 6.7 per cent in September as against 7.8 per cent of August, government data showed on Wednesday. “In…Read the original at BusinessLine
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