India’s eight core industries grew by just 0.7% in May 2025 compared to a year earlier, as strong output in cement and steel was offset by declines in electricity, crude oil, and natural gas. The latest data released by the Ministry of Commerce and Industry show coal, steel, cement, and refinery products recorded positive year-on-year growth, with cement output rising sharply by 9.2% and steel by 6.7%.
Coal production rose 2.8%, while refinery output edged up 1.1%. In contrast, electricity generation declined by 5.8%, crude oil by 1.8%, and natural gas by 3.6%. Fertilizer production slumped 5.9%, extending a weak streak in the sector.
Overall, the cumulative growth of the core sector during April–May 2025 stood at 0.8%, down from 8.9% in the same period last year. The Index of Eight Core Industries accounts for 40.27% of the overall Index of Industrial Production and is often seen as a bellwether of economic momentum.
While infrastructure sectors like steel and cement maintained robust output amid ongoing construction activity and public capital spending, the contraction in electricity and hydrocarbons signals pressure points in energy demand and supply conditions. The government noted that the data for May is provisional and subject to revision.
The next index release, covering June 2025, is scheduled for July 15.
