India’s eight core industries registered 1.7 percent year-on-year growth in June 2025, according to the latest data released by the Ministry of Commerce and Industry. The cumulative Index of Core Industries grew by 1.3 percent in the April to June quarter, indicating tempered expansion amid mixed performance across sectors.
Leading the growth momentum were steel, cement and petroleum refinery products. Steel production rose by 9.3 percent in June, with a cumulative increase of 7.0 percent in the first quarter of FY26. Cement output surged by 9.2 percent in June, sustaining strong quarterly momentum at 8.4 percent. Refinery product volumes climbed by 3.4 percent during the month, although cumulative output remained unchanged compared to the same period last year.
The Index of Core Industries tracks the output of coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity—sectors that together account for 40.27 percent of the weight in the Index of Industrial Production.
Meanwhile, electricity generation fell by 2.8 percent in June, contributing to a 2.0 percent quarterly decline. Natural gas production mirrored this trend, dipping by 2.8 percent year-on-year and registering a cumulative contraction of 2.5 percent. These declines moderated the overall growth rate for the sector.
The final growth rate for May 2025 stood at 1.2 percent, signaling a steady but restrained industrial outlook. The data suggests that while core sectors like steel and cement continue to be driven by construction and infrastructure demand, energy segments are confronting transitional and seasonal headwinds.
With expansion in greenfield projects, housing, and highway development pushing material demand upward, the performance of cement and steel reflects the real economy’s foundational momentum. However, declining power generation and gas production point to evolving structural dynamics that may require recalibration of fuel supply strategies and grid efficiencies.
