Core Industries Slow Down In September 2025: Energy Weakness Offsets Steel And Cement Gains
The slowdown was primarily driven by weaker output in coal, crude oil, natural gas, and petroleum refining, partially offset by gains in steel, cement, electricity, and fertilisers.
India’s core sector growth moderated to 3 per cent in September 2025, easing from a revised 6.5 per cent expansion in August, according to data released by the Ministry of Commerce and Industry on Tuesday.
The slowdown was primarily driven by weaker output in coal, crude oil, natural gas, and petroleum refining, partially offset by gains in steel, cement, electricity, and fertilisers.
Steel, Cement, Fertiliser Drive September Growth
The combined Index of Eight Core Industries (ICI), which represents 40.27 per cent of the weight in the overall Index of Industrial Production (IIP), registered only a modest increase last month.
The combined Index of Eight Core Industries (ICI) increased by 3 per cent (provisional) in September 2025 as compared to the Index in September 2024. The production of Steel, Cement, Electricity and Fertilizer recorded positive growth in September 2025 pic.twitter.com/F6OQVm8RzC
— ANI (@ANI) October 21, 2025
Steel production surged by 14.1 per cent year-on-year, leading the pack, followed by cement at 5.3 per cent and fertilisers at 1.6 per cent. Electricity generation rose 2.1 per cent.
However, the overall growth was dampened by contractions across energy-heavy sectors. Coal production fell 1.2 per cent, crude oil declined 1.3 per cent, natural gas output dropped 3.8 per cent, and petroleum refinery products slipped 3.7 per cent.
These categories, which carry substantial weight in the index, collectively dragged down the composite figure.
Cumulative Growth At 2.9 Per Cent For FY26 So Far
During April to September 2025-26, the cumulative growth in the eight core sectors stood at 2.9 per cent, compared with the same period last year. The ministry’s data also confirmed that the final growth rate for August was revised upward to 6.5 per cent, highlighting that the current deceleration marks a temporary softening from the previous month’s high.
Steel continued to show strong momentum, with a cumulative output of 11 per cent in the first half of the fiscal year. Cement production grew by 7.7 per cent, while electricity and fertiliser output rose 0.9 per cent and fell 0.4 per cent, respectively. In contrast, petroleum products declined 0.3 per cent, and both crude oil and natural gas reported deeper cumulative falls of 1.1 per cent and 2.9 per cent.
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