India's Factory Output Growth Slows to Four-Month Low in September
India's industrial output rose 6.7% year on year in September, a four-month low, while growth for Q2 picked up to 7.3%, Moody's reports.
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what happened
India's industrial output grew 6.7% year on year in September, the slowest pace in four months. A high base from last year and a decline in mining weighed on the figure, while manufacturing and power generation kept supporting overall activity. Moody's reports that manufacturing, which makes up 76.1% of the index, rose 7.6% after 8.6% in August.
Mining and quarrying contracted 6.2%, following a 4.6% fall the previous month, mainly due to non-metallic minerals. Electricity generation rose 12.6% amid strong demand and deficient rainfall. Devendra Pant of India Ratings said the base effect and mining weakness pulled growth down, while ICRA's Aditi Nayar expects GDP growth above 7% in the July-September quarter.
why it matters
Across the July-September quarter, industrial output rose 7.3%, up from 6.2% in the first quarter, which supports forecasts for India's economic growth. For markets, the stronger industrial trend strengthens the growth picture, but softer consumer demand and high crude prices could limit further momentum.
market impact
Indian equities and the rupee: solid industrial data supports growth expectations, while the mining slump weighs.
tags
instruments
sources
- IIP Growth Eases to 4-mth Low in September — Moody's, 29 October 2026 at 04:13 UTC
- IIP Growth Eases to 4-mth Low in Sept as Mining Output Contracts — Moody's, 29 October 2026 at 04:11 UTC
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