Core sector growth slows to 3.7% in December on lower oil, gas output

However, core sector growth improved on a month-on-month basis in December, led by higher cement, steel, fertiliser and electricity output

India's eight key infrastructure sectors grew at a 3.7 per cent rate in December 2025, down from 5.1 per cent growth recorded in the same month last fiscal, according to data released by the Ministry of Commerce and Industry on Tuesday.

 

The slower growth was attributable to a decline in production of crude oil, natural gas, and refinery products, the data showed.

 

However, on a month-on-month basis, growth improved from 2.1 per cent in November 2025, driven by strong cement, steel, electricity, fertiliser and coal output. This was also the highest growth recorded in the past four months.

 

 

During the April-December 2025 period, the output of these sectors grew by 2.6 per cent against 4.5 per cent recorded during the corresponding period in the previous fiscal, the data showed.

 

Here is a look at sector-wise performance (Y-o-Y)

• Cement output rose 13.5 per cent in December 2025, up from 10.3 per cent in the same month last year.
• Steel production grew 6.9 per cent in December 2025, compared with 7.3 per cent in December 2024.
• Electricity generation increased 5.3 per cent, slower than the 6.2 per cent growth recorded a year ago.
• Crude oil output fell 5.6 per cent in December 2025, compared with a growth of 0.6 per cent in the same month last year.
• Natural gas production declined 4.4 per cent, against a drop of 1.8 per cent in December 2024.
• Fertiliser production rose 4.1 per cent, up from a growth of 1.7 per cent a year ago.
• Coal production slowed to 3.6 per cent growth in December 2025, from 5.3 per cent in December 2024.
• Refinery products output declined 1 per cent in December 2025, compared with a growth of 2.8 per cent in the same month last year.