Core Sector Growth

Electricity generation contracted for the first time in nine months, with a 5.8 per cent drop that marked the sharpest downturn since June 2020

India's eight core sectors' growth slowed down to 0.7 per cent, lowest in nine months, in May 2025 against 6.9 per cent in the same month last year, according to the latest government data released on Friday. The previous low pace was recorded in August 2024 when the output had contracted by -1.5 per cent. In April this year, the growth in output of these key infrastructure sectors were recorded at 1 per cent. The output of four key sectors -- crude oil, natural gas, fertiliser and electricity -- recorded a negative growth in May. However, refinery products and cement output recorded a positive growth. During April-May this fiscal, the eight sectors expanded by 0.8 per cent against 6.9 per cent during the same period last fiscal.

Taking a broad view, the Q-o-Q acceleration could mean the business cycle is shifting into higher gear

April growth slowed due to contraction in refinery and fertiliser output, high base effect; only coal and natural gas posted gains among eight core industries

On the other hand, the output of crude oil (-4.8 per cent) and natural gas (-1.2 per cent) contracted during the month

Four of the 10 largest sectors - oil & gas, automotive, power, and FMCG - saw year-on-year profit declines, while six sectors posted double-digit earnings growth

For the first time in 42 months, the output of the core sector has contracted (-1.6 per cent) during August.

The growth in production of eight key infrastructure sectors slowed down to 6.1 per cent in July this year due to a decline in the output of crude oil and natural gas, according to official data released on Friday. The growth rate, however, is up from 5.1 per cent in June. The growth of core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 8.5 per cent in July 2023. During April-July this fiscal, the output of core sectors rose by 6.1 per cent against 6.6 per cent in the same period last fiscal. The eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP) which measures overall industrial growth. Crude oil and natural gas output contracted by (-) 2.9 per cent and (-) 1.3 per cent, respectively, in July.

Slowdown reflects a high base and reduced electricity demand, down from 6.4% in May and 8.4% last year

Core industries contributing to this growth, include coal, natural gas, cement, steel, crude oil, electricity, and refinery products which make up 40.27% of India IIP

Coal output grew by 10.2 per cent, the only sector to retain a double-digit growth in January, compared to 10.7 per cent previously

Only fertilisers and cement sectors see acceleration in output

The data indicates that the combined index of eight core industries showed an increase of 7.8 per cent (provisional) in November 2023, the government said

Madan Sabnavis, chief economist at Bank of Baroda, said core sector growth in November showed steady growth and the slight moderation had been due to base effects

The output of eight key infrastructure sectors increased by 7.8 per cent in November 2023 against a 5.7 per cent expansion in the year-ago period, according to the official data released on Friday. All sectors except crude oil and cement recorded healthy production growth in the month under review. The core sector (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity) growth in October was 12 per cent. Coal and refinery products output recorded double-digit growth. The output growth of eight sectors was 8.6 per cent in April-November 2023-24 against 8.1 per cent in the year-ago period.

In August last year, the core sector had grown by 4.2 per cent

Crude oil production saw positive growth (2.1%) for the first time in 14 months since May 2022

Madan Sabnavis, chief economist at Bank of Baroda, said the continued traction in cement and steel could be attributed to government spending

The growth rate of the index of eight core industries (ICI) during 2022-23 was 7.7% (provisional), the ministry said in a release

Output accelerated by only 0.1% in October; 4 of 8 core industries reported production contraction