India’s industrial production growth slowed to 6.7% year-on-year in September, as manufacturing and electricity output growth moderated and mining activity contracted further, according to government data released on Wednesday.The growth was lower than the 7.3% expected by economists in a Reuters poll and the revised 7.8% expansion recorded in August. The moderation points to a loss of momentum in industrial activity, with weakness in mining and slower growth in consumer durables and capital goods weighing on the overall performance.The Index of Industrial Production (IIP), compiled by the Ministry of Statistics and Programme Implementation (MoSPI), measures changes in industrial output across sectors, including manufacturing, mining and electricity.Manufacturing and electricity growth moderatesManufacturing, which carries the largest weight in the industrial production index, grew 7.6% in September, down from a revised 8.6% in August.

The sector remained the principal source of industrial growth, but the slower expansion suggests that momentum across factories moderated during the month.Electricity output rose 11.2% year-on-year, compared with a revised 12.3% increase in August. Mining was the weakest-performing sector, with output contracting 6.2% in September after a 4.6% decline in August.The continued contraction in mining highlights the uneven performance of the three major components of industrial production. While manufacturing and electricity continued to expand, mining activity remained a drag on overall growth.