India's Core 8 Industries Record Muted Growth Of 0.5 Per Cent In April Amidst Mixed Output Trends

The eight core industries—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity—together carry a combined weight of 40.27 per cent in the IIP.

This slight uptick reflects varied performance across sectors, with strong showings in steel, cement, coal, electricity, and natural gas offset by declines in other segments such as crude oil, petroleum refining, and fertilisers.

Source : Freepik

India's eight key infrastructure industries posted a modest growth of 0.5 per cent in April 2025 compared to the same month last year, according to data released by the Commerce and Industry Ministry on Tuesday.

This slight uptick reflects varied performance across sectors, with strong showings in steel, cement, coal, electricity, and natural gas offset by declines in other segments such as crude oil, petroleum refining, and fertilisers, reported IANS.

The eight core industries—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity—together carry a combined weight of 40.27 per cent in the Index of Industrial Production (IIP), making them a critical indicator of broader industrial activity in the country.

Infrastructure Spending Spurs Steel and Cement Surge

Steel and cement continued to benefit from increased infrastructure activity. Steel output, which accounts for nearly 18 per cent of the core index, rose 3.0 per cent in April 2025 year-on-year. Over the full fiscal year from April 2024 to March 2025, cumulative steel output grew by 6.9 per cent.

Cement, too, recorded strong momentum with a 6.7 per cent increase in April output. Its cumulative growth stood at 6.3 per cent during the financial year. "Both the steel and cement sector have shown strong growth as the government’s massive investments in big ticket infrastructure projects such as highways, railways, seaports and airports have spurred demand for these products. Besides, there has also been a pick-up in the construction industry," the statement noted.

Electricity generation saw a modest increase of 1 per cent in April. Over the financial year, power production grew by 5.2 per cent. Coal production was up 3.5 per cent during April 2025, contributing to a cumulative rise of 5.1 per cent across the year. Natural gas registered a small increase of 0.4 per cent for the month.

Energy and Fertiliser Segments Weaken Overall Growth

Crude oil production declined by 2.8 per cent in April, continuing a downward trend attributed to ageing oilfields operated by ONGC. Similarly, refinery output dropped 4.5 per cent for the month. However, the full-year figures showed a 2.8 per cent cumulative increase in refinery production.

Fertiliser production also weakened, falling 4.2 per cent in April compared to the previous year. Still, the cumulative index for fertilisers rose by 2.9 per cent over the 2024–25 period.

The final growth rate for January 2025 has been revised to 5.1 per cent. The cumulative growth for the core sector for the financial year ending March 2025 stands at 4.5 per cent, compared to the same period in the previous year.