Growth in industrial activity in the eight core sectors of the economy remained flat in October 2025, the worst performance in 14 months, according to official data.

Growth in the Index of Eight Core Industries stood at 0% in October 2025, down from 3.8% in October of the previous year and 3% in September this year. October’s performance is the worst since August last year, when the index had contracted 1.5%.

The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — together account for 40.27% of the Index for Industrial Production (IIP).

The flat trajectory in October was primarily due to growth in the steel, cement, fertilisers and refinery products sectors being balanced out by contractions in the coal, electricity, natural gas, and crude oil sectors.

The steel sector grew 6.7% in October 2025, which, although the second-highest among the eight core sectors, was a six-month low for the steel sector. The cement sector grew by 5.3% in October 2025, faster than the 3.1% growth in October last year as well as the 5% growth in September 2025.

The fertiliser sector grew the fastest among the eight core sectors, at 7.4% in October 2025, the fastest in seven months. The refinery products sector grew 4.6% in October 2025, the sector’s best performance in nine months.

On the other hand, the coal sector contracted 8.5 in October 2025, coming on the back of a period of prolonged monsoons and the onset of cooler weather, which translated to a subdued demand for power and contributed to lower mining activity. This showed itself in the 7.6% contraction in the electricity sector during October 2025.

The natural gas sector also slumped 5%, its worst performance in seven months, whilst production of crude oil declined 1.2%.

According to Aditi Nayar, chief economist at ratings agency ICRA, given the deterioration in the performance of the mining and electricity segments, the IIP growth could ease to about 2.5-3.5% October from the 4% seen in September.

“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 added.