India’s core sector grows 3.7% in December 2025 on higher output of cement, steel and coal

India’s eight core infrastructure industries recorded a 3.7 per cent growth in December 2025, supported by higher production of cement, steel, coal, electricity and fertilisers, said the Commerce & Industry Ministry on Tuesday.

The Index of Eight Core Industries (ICI), which tracks the performance of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, rose to 175.7 points in December 2025, compared to 169.4 points in the same month last year. The core sector accounts for 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Among individual sectors, cement production surged 13.5 per cent, the highest growth among core industries, reflecting sustained momentum in construction and infrastructure activity. Steel output increased by 6.9 per cent, while electricity generation rose by 5.3 per cent during the month. Coal production grew by 3.6 per cent, and fertiliser output expanded by 4.1 per cent, further supporting the overall growth.

However, the performance of energy-related segments remained mixed. Crude oil production declined by 5.6 per cent, natural gas output fell by 4.4 per cent, and petroleum refinery products registered a marginal contraction of 1.0 per cent in December 2025.

The final growth rate for November 2025 has been revised to 2.1 per cent, while the cumulative growth of the core sector during April–December 2025-26 stood at 2.6 per cent on a provisional basis, compared to the corresponding period of the previous year.

On a cumulative basis during the current financial year so far, steel production grew strongly by 9.5 per cent, followed by cement at 8.8 per cent and fertilisers at 1.7 per cent. Electricity generation posted a modest increase of 0.3 per cent, while coal output declined by 0.7 per cent. Crude oil and natural gas continued to witness contraction, falling by 1.9 per cent and 3.2 per cent, respectively.

The Ministry noted that data for December 2025 is provisional and subject to revision based on updated information from source agencies. Electricity generation figures include output from renewable sources, in line with revised methodology adopted since April 2014.

The release of the Index of Eight Core Industries for January 2026 is scheduled for February 20, 2026.

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