India’s eight core infrastructure industries grew by 3.7 per cent year-on-year in December 2025, rising to a four-month high and marking a clear sequential improvement from 2.1 per cent growth in November
India’s eight core infrastructure industries grew by 3.7 per cent year-on-year in December 2025, rising to a four-month high and marking a clear sequential improvement from 2.1 per cent growth in November, government data released on Tuesday showed.
While the pace of expansion slowed from 5.1 per cent recorded in December 2024, the December rebound suggests a gradual firming up of industrial activity toward the end of the calendar year, driven primarily by construction- and infrastructure-linked sectors.
The Index of Eight Core Industries (ICI), which tracks coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, grew 3.7 per cent on a provisional basis in December. The index carries 40.27 per cent weight in the Index of Industrial Production (IIP), making it a key indicator of broader industrial momentum.
Cement and steel anchor December pickup
The acceleration in December was led by a sharp rise in cement production, which jumped 13.5 per cent, reflecting sustained demand from housing, infrastructure and public works projects.
Steel output rose 6.9 per cent, reinforcing signs of resilience in construction and capital goods segments. Electricity generation increased 5.3 per cent, pointing to steady industrial and commercial power demand, while fertiliser production expanded 4.1 per cent, supported by seasonal agricultural requirements.
Coal production grew 3.6 per cent during the month, aiding power generation and steelmaking, although its performance over the full financial year remains mixed.
In all, five of the eight core sectors—coal, fertilisers, steel, cement and electricity—posted positive growth in December, helping lift the headline index.
Hydrocarbon weakness tempers overall momentum
The improvement in core sector growth was partially offset by continued weakness in energy hydrocarbons.
Crude oil production contracted 5.6 per cent year-on-year, while natural gas output declined 4.4 per cent, underlining persistent structural challenges in domestic oil and gas production, including ageing fields and limited new output additions.
Refinery products output also slipped 1 per cent in December, reflecting softer throughput and maintenance-related disruptions.
Cumulative growth remains subdued
On a cumulative basis, core sector output grew 2.6 per cent during April–December 2025-26, compared with the corresponding period last year. The relatively modest expansion highlights the uneven nature of India’s industrial recovery, with strength concentrated in construction-linked segments and weakness persisting in upstream energy sectors.
While steel and cement recorded strong cumulative growth, coal output declined 0.7 per cent, crude oil fell 1.9 per cent, and natural gas contracted 3.2 per cent during the nine-month period. Refinery output remained largely flat, with marginal cumulative growth.
The government also revised the November 2025 core sector growth to 2.1 per cent (final), confirming that December’s numbers represent a sequential improvement, even as year-on-year momentum remains below last year’s levels.
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