India’s Economic Growth Slows To 14-Month Low In October: ICRA
India’s economic activity growth eased sharply in October 2025, with the ICRA Business Activity Monitor registering a year-on-year increase of just 5.9%, the slowest pace in 14 months, compared with 8.3% in September.
The slowdown was driven by excess unseasonal rainfall 149% of the long-period average alongside the impact of US tariffs and penalties and an unfavourable base due to the shift in festive dates. While GST rate rationalisation supported a notable rise in vehicle registrations, heavy rains dampened core sector performance, with core output remaining flat compared to a year ago, following 3.3% growth in September.
ICRA noted that 10 of the 16 high-frequency indicators used in the index weakened in October, including steep declines in electricity generation, mining activity and non-oil exports, exerting significant drag on overall momentum.
The flat core output marks the weakest performance in over a year and is expected to moderate industrial production data, with IIP growth projected at 2.5-3.5% for the month, down from 4.0% in September, though manufacturing could still hold relatively firm.
