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India’s Core Sector Growth Accelerates in August 2025

India's Core Sector Growth Accelerates in August 2025
India’s infrastructure output picked up pace in August 2025, as the eight core industries recorded a 6.3% year-on-year growth, up from 3.7% in July. The improvement was driven by strong performance in steel, coal, cement, fertilisers, electricity, and refinery products.

Key Sector Highlights

  • Steel: Rose 14.2% in August, slightly slower than July’s 16.6%, but remained the top performer.
  • Coal: Output surged 11.4%, rebounding strongly from last year’s contraction.
  • Cement: Production increased 6.1%, moderating from double-digit growth in July.
  • Fertiliser: Output improved 4.6%, reflecting stronger demand.
  • Electricity: Generation rose 3.1%, showing steady growth.
  • Refinery Products: Increased 3%, indicating resilience across energy-related sectors.
  • Crude Oil: Production fell 1.2%, continuing a long-term decline.
  • Natural Gas: Output dropped 2.2%, remaining weak through the April–August period.

Index of Eight Core Industries (ICI)

The ICI, which forms 40.27% of the Index of Industrial Production (IIP), showed a cumulative growth of 2.8% between April and August 2025–26. This reflects a gradual and steady recovery in India’s core sectors.

Month-on-Month Growth Comparison

SectorGrowth in Aug 2025Growth in Jul 2025
Overall6.3%3.7%
Coal+11.4%-12.3%
Crude Oil-1.2%0%
Natural Gas-2.2%-3.2%
Refinery Products+3%-1.1%
Fertiliser+4.6%2%
Steel+14.2%16.6%
Cement+6.1%11.6%
Electricity+3.1%3.7%

Overall, the data shows a strong rebound in core industries, especially in steel, coal, and fertilisers, signaling positive momentum for India’s infrastructure and industrial growth.

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