India Core Sector Grows 3.7% in December on Cement, Steel Boost

India’s eight core infrastructure industries registered a growth of 3.7 per cent in December 2025, driven mainly by strong performance in cement, steel, coal, electricity and fertilisers, according to data released by the Ministry of Commerce & Industry on Tuesday.

The Index of Eight Core Industries (ICI), which measures output across coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, rose to 175.7 points in December 2025 from 169.4 points in the same month last year. These sectors together carry a weight of 40.27 per cent in the Index of Industrial Production (IIP), making the data a key indicator of overall industrial activity.

Cement emerged as the best-performing sector, recording a robust growth of 13.5 per cent, reflecting sustained momentum in construction and infrastructure projects. Steel production increased by 6.9 per cent, supported by demand from housing and capital goods. Electricity generation rose by 5.3 per cent, while coal output grew by 3.6 per cent. Fertiliser production also expanded by 4.1 per cent during the month, contributing positively to the overall index.

In contrast, energy-related segments continued to face challenges. Crude oil production declined by 5.6 per cent, natural gas output fell by 4.4 per cent, and petroleum refinery products contracted marginally by 1.0 per cent in December 2025.

The ministry also revised the final growth rate for November 2025 to 2.1 per cent. On a cumulative basis, core sector growth during April–December 2025-26 stood at 2.6 per cent on a provisional basis, compared with the same period last year.

During the current financial year so far, steel production recorded a strong cumulative growth of 9.5 per cent, followed by cement at 8.8 per cent and fertilisers at 1.7 per cent. Electricity generation rose marginally by 0.3 per cent, while coal output declined by 0.7 per cent. Crude oil and natural gas production continued to contract, falling by 1.9 per cent and 3.2 per cent, respectively.

The ministry noted that December 2025 data is provisional and subject to revision. Electricity figures include renewable energy output under the revised methodology. The January 2026 core sector data will be released on February 20, 2026.